/NOT FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO,
Oct. 27, 2017
/CNW/ - Starlight U.S. Multi-Family (No. 5) Core Fund (TSX.V:
STUS.A, STUS.U) (the "Fund") announced today it has sold the
property located at 11925 Jones Road, Houston, Texas ("The Reserve at Jones Road"),
a class "A", garden-style apartment community in the Tomball submarket in Northwest Houston. The property consists of
114 multi-family units and was constructed in 2013.
Pursuant to a purchase and sale agreement, Jones Road
Acquisition LLC, an indirect wholly owned subsidiary of the Fund,
sold The Reserve at Jones Road unencumbered for the purchase price
of approximately US$14.35
million. The proceeds from the sale will be used to
repay the outstanding mortgage balance of approximately
US$9.20 million, with the remainder
expected to be utilized on a tax-deferred basis to acquire a
property with a greater number of multi-family units creating
operational economies of scale and that is also expected to improve
the Fund's geographical diversification, average portfolio vintage,
and net operating income ("NOI") growth opportunities.
"The sale of The Reserve at Jones Road once again
highlights the Fund's execution of its business plan to divest
smaller assets and reduce its exposure in any one market,"
commented Evan Kirsh, the Fund's
President. "We intend to use the proceeds to acquire a replacement
property on a tax-deferred basis in a market that will enhance the
Fund's geographical diversity and position the Fund to capitalize
on enhanced economies of scale."
About Starlight U.S. Multi-Family (No. 5) Core
Fund
The Fund is a limited partnership formed under the Limited
Partnerships Act (Ontario) for the
primary purpose of indirectly acquiring, owning and operating a
portfolio of diversified income producing rental properties in the
U.S. multi-family real estate market. The Fund currently owns 22
properties, consisting of 6,866 multi-family units with an average
year of completion of 2011.
Non-IFRS Financial Measures
NOI does not have a standardized definition prescribed by
International Financial Reporting Standards ("IFRS") and is,
therefore, unlikely to be comparable to similar measures presented
by other reporting issuers. The Fund uses this measure to better
assess the Fund's underlying performance and financial position and
provides this additional measure so that investors may do the same.
Details on non-IFRS measures are set out in the Fund's management's
discussion and analysis for the period ended June 30, 2017 that is available on the Fund's
profile on SEDAR at www.sedar.com.
Forward-Looking Information
This news release contains statements that may constitute
forward-looking statements within the meaning of Canadian
securities laws and which reflect the Fund's current expectations
regarding future events, including statements concerning future
acquisitions and their impact on the Fund's geographical
diversification, average portfolio vintage and NOI growth
opportunities. Particularly, statements regarding future results,
performance, achievements, prospects or opportunities for the Fund
or the real estate industry are forward-looking statements. 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.
The forward-looking statements in this news release
involve risks and uncertainties, including those set forth in the
Fund's materials filed with the Canadian securities regulatory
authorities from time to time at www.sedar.com. Actual results
could differ materially from those projected herein. Those
risks and uncertainties include, among other things, risks related
to reliance on the Fund's manager, the experience of the Fund's
officers and directors, substitutes for residential real estate
rental units, reliance on property management, competition for real
property investments and tenants, and U.S. market
factors.
Information contained in forward-looking statements is
based upon certain material assumptions that were applied in
developing such forward-looking statements including management's
perceptions of historical trends, current conditions and expected
future developments, as well as other considerations that are
believed to be appropriate in the circumstances, including the
following: the ability of the Fund to complete future acquisitions
and their impact on the Fund's geographical diversification,
average portfolio vintage, and NOI growth opportunities; the
inventory of multi-family real estate properties; the availability
of mortgage financing and current interest rates; the extent of
competition for properties; the population of multi-family real
estate market participants; assumptions about the markets in which
the Fund operates; the ability of the Fund to manage and operate
the properties; the global and North American economic environment;
foreign currency exchange rates; and governmental regulations or
tax laws. Readers are cautioned against placing undue reliance on
forward-looking statements. Except as required by applicable
Canadian securities laws, none of the Fund or its manager undertake
any 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.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Starlight U.S. Multi-Family (No. 5) Core Fund