(Changes sourcing, adds context in paragraphs 2-5)

May 16 (Reuters) -

Starwood Real Estate Income Trust has drawn nearly $1.3 billion from its $1.55 billion line of credit, its recent regulatory filing showed, as it fields withdrawal requests from investors worried about the troubles in the real estate sector.

In March, shareholders applied to redeem $408 million from the fund, and 24% of each investor's request was honored, it said.

Run by Barry Sternlicht-led Starwood Capital Group, the $10 billion fund invests in real estate including multi-family and industrial properties, some of which have been battered by high interest rates and fears of loan defaults.

Turmoil in the real estate industry has also hit regional banks like New York Community Bancorp, whose shares have lost nearly 65% since it reported a surprise quarterly loss due to its exposure to commercial real estate.

Starwood's move was first

reported by the Financial Times, which said that the fund could run out of credit and cash in the second half of 2024 if the current pace of redemptions were to continue.

Starwood Capital did not immediately respond to a Reuters request for comment. (Reporting by Pritam Biswas and Niket Nishant in Bengaluru; Editing by Anil D'Silva)