CORRECTED-UPDATE 1-Starwood Capital confirms raising Monmouth Real Estate bid to $1.86 bln

(Corrects paragraph 4 to say “total offer can increase to as much as $19.51 per share” and clarifies break-up fee condition)

July 21 (Reuters) - U.S. investment firm Starwood Capital Group on Wednesday confirmed it sweetened its buyout bid for Monmouth Real Estate Investment Corp to $1.86 billion.

Starwood raised its bid for Monmouth to $18.88 per share from $18.70 apiece.

Monmouth said last week it had received an unsolicited acquisition proposal from “a large private investment firm”.

Starwood said the total offer can increase to as much as $19.51 per share in case Monmouth does not pay a break-up fee of $62.2 million to Equity Commonwealth or pays a lower fee. Equity Commonwealth had planned to acquire Monmouth for $1.91 billion in stock.

Monmouth, whose shares are up 2.1% in premarket trade, could not be immediately reached for a comment. (Reporting by Shreyasee Raj in Bengaluru; editing by Uttaresh.V)