From CNBC: 2024-06-05 09:46:35

Barry Sternlicht, chairman and CEO of Starwood Capital Group, defends decision to cap investor withdrawals due to losses and redemption requests. The $10 billion Starwood Real Estate Income Trust, heavily impacted by Federal Reserve rate hikes, now limits monthly withdrawals to 0.33% of net asset value and waived 20% of management fee.

Sternlicht prioritizes loyal clients, restricting withdrawals to protect those who stayed invested. Starwood Real Estate Trust, one of the world’s largest, maintained $752 million in liquidity in April. Sternlicht criticizes Fed’s monetary policy but predicts interest rates will decrease soon, leading to market recovery and clearer future prospects.

Read more: Sternlicht defends gating Starwood REIT withdrawals, hopes it’s a ‘six-month thing’