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Starwood ups IPO target to $800m

Barry Sternlicht shows full confidence ahead of first-day trading of REIT Starwood Property Trust as the firm raises its target fundraise from $500m to $800m.

Barry Sternlicht and his firm Starwood Capital has reportedly lifted the target fundraise for the IPO of Starwood Property Trust from $500m to $800m.

The decision was made on Tuesday according to the Wall Street Journal.

The forthcoming REIT – due to begin trading today – is designed to target commercial and residential real estate debt opportunities, using financing from the US government’s bailout packages, TALF and PPIP.

In recent SEC filings, Starwood said the current dislocation in the real estate markets had and would continue to cause an “over-correction in the repricing of real estate assets”.

In the near-term that would generate “significant opportunity” to originate and acquire commercial real estate mortgage loans, as owners and sellers struggled to find adequate financing.

However, SPT said the “pillar” of its investment strategy would be the origination of “mortgage and mezzanine loans”.