Starwood Capital Group officials say that the offering for Starwood Global Opportunity Fund VI closed on Feb. 28 with total proceeds of $567 million from private and institutional capital sources.
As of March 31, the fund had acquired a portfolio valued at $485 million of assets that represented approximately $145 million of investor capital.
Starwood Capital officials did not release specifics about the initial transactions conducted by the Starwood Global Opportunity Fund VI, including what markets the fund's assets are housed or specific properties the fund now has interest in.
Company officials say that Starwood Global Opportunity Fund VI will expand the company's reach in both domestic and international markets that have been established in its prior funds. Fund VI will target investments primarily in the U.S., United Kingdom, Western Europe and Japan. Its portfolio will be diverse and is expected to consist of assets such as: office, senior housing, industrial, retail, mixed-use, residential land development and corporate transactions.
"This is a particularly interesting time to invest in real estate," says Starwood Capital Group Chairman and Chief Executive Officer Barry Sternlicht. "The spread between U.S. cap rates and interest rates is perhaps the widest we have seen in decades. We are also seeing disruption in the real estate markets following last year's dramatic economic downturn, and financing for new projects is as difficult as it's been in 15 years."
He adds that on the international front, the new fund sees Japan as a profitable real estate market as long as fiscal reforms are put into place. The Western European market offers the fund opportunities as corporations and governments continue to divest their real estate holdings, Silvey says.
Starwood Capital Group Global LLC, headquartered in Greenwich, is a privately held company that since 1991 has launched a series of opportunity funds and affiliates that has invested more than $7 billion in real estate assets, joint ventures and real estate operating companies.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
