opportunistic

Starwood now expects less troubled deal flow to emerge in the non-performing-loan space from the current pandemic crisis than it did before. But that should not worry investors which committed to its latest ‘distressed’ fund.

The Miami Beach-based private investment firm will be the third private real estate manager to amass double-digit billions for a single property fund.

Large pools of capital have been raised for distressed strategies, but thanks to government support schemes, finding a home for it is proving a challenge.

With the pandemic opening up secondary opportunities, the Los Angeles-based firm went on a performing loan buying spree for its $650m strategy.

The Starwood chairman says New York and other Democrat-controlled areas need a ‘tsunami of change’ if they are to remain attractive to real estate owners.