Saba Capital and Cox Capital Launch Tender Offer for SREIT Shares
Saba Capital Management LP and Cox Capital Partners have begun a joint tender offer to purchase outstanding shares of Starwood Real Estate Income Trust, the publicly registered non-traded real estate investment trust sponsored by Starwood Capital Group. The move aims to provide liquidity to investors in SREIT, which has significantly restricted redemptions over the past two years.
The tender offer targets approximately 5% of SREIT’s total outstanding shares. The purchasers are seeking to acquire up to 9,533,647 shares of Class S shares at $14.30 per share, and up to 10,126,353 shares of Class I shares at $15 per share.
These offer prices represent a substantial discount to the transaction prices disclosed by SREIT in February 2026 and based on the net asset value as of Jan. 31: 28.6% for Class S and 24.4% for Class I. The offer is scheduled to expire at 5 p.m., ET, on April 25.
The tender offer arrives as SREIT continues to grapple with a massive backlog of repurchase requests. Since late 2022, mounting investor demand for redemptions forced the fund sponsor to restrict outflows in May 2024.
SREIT currently has approximately $1 billion in outstanding redemption requests. For the past six months, SREIT has only been able to honor shareholder redemption requests on a pro rata basis, meaning that only approximately 4% of each shareholder’s monthly repurchase requests have been satisfied.
Saba and Cox stated that their offer provides a “simple, transparent process” for shareholders to receive guaranteed cash liquidity, bypassing the fund’s current monthly pro rata limitations.
To facilitate the transaction, Cox Capital has developed an online platform designed to guide both financial advisers and individual shareholders through the tendering process. If the offer is oversubscribed – meaning shareholders attempt to sell more than the approximately 19.6 million shares sought – the purchasers will accept the shares on a pro rata basis.
Neither Saba Capital nor Cox Capital is affiliated with SREIT or its adviser.
Starwood Real Estate Income Trust launched in December 2017 and invests in stabilized real estate across the United States and Europe.
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