Boaz Weinstein's Saba Capital has offered to buy shares in Starwood Real Estate Income Trust at a 20% discount to the fund's stated value, marking a bold bet on distressed property assets. The $8.2 billion fund, marketed to individual investors, has limited redemptions to just 1.5% of assets since May 2024 amid liquidity concerns.

Saba's offer targets the 5% of outstanding shares, seeking to capitalize on growing investor unease with private capital stakes. The fund's struggles intensified after an FT report revealed it tapped credit lines rather than selling properties to meet redemptions. This contrasts with Blackstone's $62 billion Breit fund, which successfully sold $30 billion in assets at stated value to satisfy investors.

Saba, run by veteran Deutsche Bank trader Weinstein, has positioned itself as an opportunist in the distressed private credit market. The firm previously offered to buy shares in Blue Owl's non-traded credit funds at significant discounts after one closed to redemptions. Starwood's representative did not respond to comment requests, but Saba framed its offer as providing "guaranteed cash liquidity" through a transparent process.