Starwood Property Trust (NYSE:STWD) is soon to say goodbye to one of its divisions. The real estate investment trust announced that its board of directors has approved the spin-off of its single-family residential business. This will take the form of a REIT, which is to be called Starwood Waypoint Residential Trust. It will apply to list on the New York Stock Exchange under the ticker symbol SWAY. 

The unit's single-family residential portfolio comprised slightly more than 5,800 units at the end of September. This represented roughly $750 million in invested capital.

Once independent, the spun-off firm will be managed by SWAY Management, an affiliate of Starwood Capital Group. SWAY Management is to merge with Waypoint Real Estate Group, described by Starwood as "a leading vertically integrated single-family rental operating platform."

Starwood said it anticipates contributing $100 million in cash to help fund Waypoint Residential Trust's operations. This is planned to be supplemented by a $400 million line of credit secured by SWAY Management.

Starwood is scheduled to release its Q3 results on November 7.