Starwood Property Trust to Acquire Fundamental Income Properties for $2.2 Billion

By Stephen Nakrosis

Starwood Property Trust will acquire Fundamental Income Properties, currently owned by Brookfield Asset Management, for approximately $2.2 billion.

Starwood said Wednesday that as part of the deal it will acquire 467 properties across 44 states. The properties total 12 million square feet, encompassing 56 industries and 92 tenants. The transaction is expected to close on or about July 23.

To help finance the deal Starwood plans to offer 25.5 million shares of common stock in an underwritten public offering. Starwood will assume Fundamental's existing financing facilities totaling $1.3 billion, which includes $900 million of asset-backed security debt.

Fundamental's portfolio is 100% occupied, and diversified across industries including auto services, retail, restaurants, entertainment and education, Starwood said. The portfolio has had no credit losses since inception, and 2.2% average annual rent increases. The acquisition also provides access to specialized asset-backed security financing markets, the company said.

Write to Stephen Nakrosis at [e-mail]

(END) Dow Jones Newswires

07-16-25 1703ET