GREENWICH, CT—Starwood Capital Group is going the non-traded REIT route with plans to launch Starwood Real Estate Income Trust, according to an SEC filing. It plans to raise $5 billion in both common stock and distribution reinvestment plan shares; the offering has not been scheduled as yet.

The new vehicle's focus will be on acquiring the fee interests in real estate, real estate-related debt—other than that already covered by Starwood's debt REIT, Starwood Property Trust—and real estate-related securities directly in both the US and Europe. “We may also make investments indirectly through joint venture entities, including joint venture entities in which we do not own a controlling interest and joint venture entities in which other Starwood accounts may invest,” according to the registration statement.

PERE reported that the Blackstone Group, LaSalle Investment Management and a few other institutional asset managers have non-traded REITs in the fundraising market. Blackstone launched Blackstone Real Estate Income Trust in August 2016, and had raised $1 billion as of this past June 30. LaSalle's JLL Income Property Trust had a portfolio of 69 properties as of Sept. 30, according to PERE.

Barry Sternlicht, chairman of Starwood Capital, will also be chairman of SREIT's board. The new REIT will be managed externally by Starwood REIT Advisors, an affiliate of Starwood Capital.