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TORONTO, Feb. 21,
2022 /CNW/ - Starlight Western Canada Multi-Family
(No. 2) Fund (the "Fund") announced today that it has raised
its maximum offering size and completed its initial public offering
(the "Offering"). Pursuant to the Offering and a concurrent
private placement, the Fund issued $130,000,000 of trust units, consisting of
4,207,395 Class A Units, 5,404,905 Class B Units and 3,387,700
Class C Units of the Fund at a price of $10.00 per Class A Unit, Class B Unit and Class C
Unit (collectively, the "Units"). The Fund will have the
capacity to acquire approximately $425
million of British Columbia
multi-family real estate.
The Fund is the first limited-term, public vehicle launched by
Starlight Group Property Holdings Inc. ("Starlight") to
raise funds through a prospectus offering targeting Canadian
multi-residential rental properties.
"We are extremely pleased with the successful completion of the
maximum size offering, the result of which is the formation of
Starlight's first public, Canadian multi-family fund which will
focus on newly constructed and newer vintage properties in
British Columbia," said
Daniel Drimmer, Chief Executive
Officer of the Fund. "We welcome both new investors and long-time
supporters to our newest investment vehicle and look forward to
delivering on the Fund's objectives and creating value."
The Units were offered to the public through a syndicate of
agents led by CIBC World Markets Inc. and included Wellington-Altus
Private Wealth Inc., Scotia Capital Inc., Canaccord Genuity Corp.,
BMO Nesbitt Burns Inc., National Bank Financial Inc., Richardson
Wealth Limited, Desjardins Securities Inc., Echelon Wealth Partners
Inc., iA Private Wealth Inc., Laurentian Bank Securities Inc. and
Raymond James Ltd.
The Fund was established for the primary purpose of directly or
indirectly acquiring, owning, operating and stabilizing a portfolio
of newer vintage and newly-constructed income-producing,
multi-family real estate properties that demonstrate value based on
pricing and local supply and demand trends to achieve the Fund's
target metrics by increasing in-place rents to market rents,
revenue enhancement through ancillary income opportunities and
operating expense reductions as a result of active asset
management. The Fund intends to acquire properties that are
geographically diversified across Vancouver Island and the mainland
of the Province of British
Columbia (the "Primary Markets").
As disclosed in the Fund's final prospectus, the Fund is
currently in the process of acquiring (i) 60 multi-family suites
located at 733 Goldstream Avenue in Langford, British Columbia, (ii) 251 multi-family suites
located at 6035 Linley Valley Drive and 4800 Uplands Drive in
Nanaimo, British Columbia, (iii)
81 multi-family suites located at 2699 Peatt Road in Langford,
British Columbia, (iv) 60
multi-family suites located at 3400 Centennial Drive in
Vernon, British Columbia and (v)
43 multi-family suites located at 1803 31A Street in Vernon, British Columbia (the "Initial
Portfolio"). The balance of the net proceeds of the
Offering will be used to subsequently acquire one or more
additional income-producing, multi-family real estate properties in
the Primary Markets, consistent with the primary purpose of the
Fund.
Starlight is the promoter of the Fund and an affiliate of
Starlight will act as manager of the Fund. Starlight currently owns
and/or manages $25.0 billion in
assets in Canada and the United States, including more than 900
properties, approximately 70,000 multi-family suites (of which
approximately 60,000 multi-family suites are located in
Canada spread across seven
provinces and all three territories, with a current approximate
value of $19.0 billion), and
approximately 9,000,000 square feet of commercial space in
Canada through various entities
spread across six provinces and two territories, including in
partnership with several global institutional investors and family
offices. Starlight has significant expertise in Western Canada with 9,500 multi-family suites
under management with a value of approximately $3.2 billion. Starlight has extensive experience
overseeing and working with publicly listed entities and currently
provides services to four publicly listed entities: True North
Commercial REIT (TSX: TNT.UN), Northview Fund (TSX: NHF.UN),
Starlight U.S. Multi-Family (No. 2) Core Plus Fund (TSX-V: SCPT.A)
(TSX-V: SCPT.U) and Starlight U.S. Residential Fund (TSX-V: SURF.A)
(TSX-V: SURF.U). Starlight has been among North America's most active real estate
investors since its inception in 1995 and employs approximately 339
professionals. Starlight has completed transactions having an
aggregate value of over $38.0
billion, with a transaction volume of approximately 130,000
residential suites with over $9.0
billion of invested capital.
The Fund also announced today the initial, prorated distribution
on its outstanding Units for the period from February 22, 2022 through March 31, 2022 is expected to be paid on
April 15, 2022 to unitholders of
record on March 31, 2022. The
distribution amount will cover the period from the closing of the
Offering to March 31, 2022 and will
be as follows:
- $0.03224 per Class A Unit,
representing approximately $0.30950
per Class A Unit on an annualized basis;
- $0.03125 per Class B Unit
representing approximately $0.30000
per Class B Unit on an annualized basis; and
- $0.03298 per Class C Unit
representing approximately $0.31662
per Class C Unit on an annualized basis.
After the initial distribution, the Fund expects to declare
monthly distributions on the Units until further notice as
follows:
- $0.02579 per Class A Unit,
representing approximately $0.30950
per Class A Unit on an annualized basis;
- $0.02500 per Class B Unit
representing approximately $0.30000
per Class B Unit on an annualized basis; and
- $0.02639 per Class C Unit
representing approximately $0.31662
per Class C Unit on an annualized basis.
The monthly cash distributions will be as set out above until
such time as the Fund announces any changes to the distributions.
Any such announcement will be by way of a further press
release.
The securities described herein have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "1933 Act"), and may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements of the 1933 Act and applicable state securities
laws.
Forward-looking Statements
This news release contains statements that include
forward-looking information within the meaning of Canadian
securities laws. These forward-looking statements reflect the
current expectations of the Fund and Starlight regarding future
events, including statements concerning the use of proceeds of the
Offering, the capacity of the Fund to acquire British Columbia multi-family real estate, the
timing of the acquisition of properties by the Fund and the
acquisition of the Initial Portfolio and the ongoing distributions
by the Fund. In some cases, forward-looking statements can be
identified by terms such as "may", "might", "will", "could",
"should", "would", "occur", "expect", "plan", "anticipate",
"believe", "intend", "seek", "aim", "estimate", "target",
"project", "predict', "forecast", "potential", "continue",
"likely", "schedule", or the negative thereof or other similar
expressions concerning matters that are not historical
facts.
Material factors and assumptions used by management of the
Fund to develop the forward-looking information include, but are
not limited to: the ability to deploy the remaining proceeds from
the Offering; the Fund's current expectations about: the impact of
COVID-19 on the properties to be acquired by the Fund as well as
the impact of COVID-19 on the markets in which the Fund intends to
operate; the applicability of any government regulation concerning
tenants or rents at properties the Fund intends to acquire as a
result of COVID-19 or otherwise; the availability of multi-family
properties for acquisition (other than the Initial Portfolio) and
the price at which such properties may be acquired; the Fund's
ability to acquire all of the properties comprising the Initial
Portfolio; the availability of mortgage financing and current
interest rates; the capital structure of the Fund; the economic and
political environment in British Columba; and governmental
regulations or tax laws. While management considers these
assumptions to be reasonable based on currently available
information, they may prove to be incorrect.
Although management believes the expectations reflected in
such forward-looking statements are reasonable and represent the
Fund's internal projections, expectations and beliefs at this time,
such statements involve known and unknown risks and uncertainties
that may be general or specific and which give rise to the
possibility that expectations, forecasts, predictions, projections
or conclusions will not prove to be accurate, that assumptions may
not be correct and that objectives, strategic goals and priorities
may not be achieved. A variety of factors, many of which are beyond
the Fund's control, could cause actual results in future periods to
differ materially from current expectations of estimated or
anticipated events or results expressed or implied by such
forward-looking statements. Such factors include the risks
identified in the final prospectus, including under the heading
"Risk Factors" therein, as well as, among other things, risks
related to the availability of suitable properties for purchase by
the Fund, the availability of mortgage financing for such
properties, and general economic and market factors, including the
impact of COVID-19, interest rates, prospective purchasers of real
estate, business competition, use of derivatives, changes in
government regulations or income tax laws, as well as environmental
risks. Readers are cautioned against placing undue reliance on
forward-looking statements. Except as required by applicable
Canadian securities laws, the Fund undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise, after
the date on which the statements are made or to reflect the
occurrence of unanticipated events.
About Starlight Western Canada Multi-Family (No. 2)
Fund
The Fund is a trust formed under the laws of Ontario for the primary purpose of indirectly
acquiring, owning and operating a portfolio of income producing
multi-family rental properties located in British Columbia.
SOURCE Starlight Western Canada Multi-Family (No. 2) Fund