Activist hedge fund Saba Capital Management and Cox Capital Partners have launched a cash tender offer to acquire up to 5% of the outstanding shares of Starwood Real Estate Income Trust (SREIT), at a discount of more than 20% of the funds most recent stated value.
The offer, which commenced on 5 March and will run until 25 April 2026, comes nearly two years after SREIT, an $8.2bn retail-focused property fund managed by Starwood Capital, sharply curtailed investor redemptions in May 2024 amid surging demand for cash. The fund reduced quarterly redemption limits from 5% of net assets to 1%, slightly increasing them to 1.5% in 2025, but investors continue to face constrained liquidity, with only a fraction of requests being met.
The tender offer provides shareholders with a direct route to cash, bypassing the fund’s issuer-sponsored repurchase programmes, and allows SREIT shareholders to sell Class S shares at $14.30 each and Class I shares at $15.00 each — representing discounts of 28.6% and 24.4%, respectively, to SREIT’s most recent reported share prices. Saba and Cox are not affiliated with SREIT or its advisor.
According to the hedge fund, the process is designed to be simple and transparent, offering guaranteed liquidity for accepted shares.
Participants can tender their shares through an online platform developed by Cox, which offers step-by-step guidance and support for both shareholders and advisors.If demand exceeds the number of shares the purchasers are seeking, Saba and Cox will accept shares on a pro-rata basis up to the maximum amount specified.
The tender offer documents have been mailed to SREIT shareholders, with additional copies and information available via the Cox Capital online portal.
