Joint VentureAug 4, 2026, 04:10 PM
Starwood Real Estate Income Trust Forms JV with Apollo for $1.02B
AI Summary
Starwood Real Estate Income Trust, Inc. announced the formation of a joint venture with funds managed by Apollo Global Management. Apollo made a $1.02 billion investment for a 41.5% equity interest in the JV, which will own and operate approximately 120 affordable housing properties. Starwood retains a 58.5% equity interest and full operational control. The company plans to use the proceeds to repay a significant portion of its credit facility, aiming to improve liquidity, reduce interest expense, and enhance stockholder returns. Starwood guarantees Apollo an annual minimum yield on its investment and has a call option to redeem Apollo's interest.
Key Highlights
- Formed a joint venture with Apollo Global Management on August 3, 2026.
- Apollo invested $1.02 billion for a 41.5% equity interest in the JV.
- Starwood Real Estate Income Trust holds 58.5% equity and retains operational control.
- The JV will own, operate, and manage approximately 120 affordable housing properties.
- Proceeds from the transaction will be used to repay a significant portion of the credit facility.
- Starwood guarantees Apollo an annual minimum yield on its investment.
- Starwood has a call option to redeem Apollo's interest, capped at 7% IRR if exercised between 5-10 years.
Price Impact
More from SWDR