Starlight Western Canada Multi-Family (No. 2) Fund Announces Receipt of Expressions of Interest and Commitments Exceeding $42 Million, Increases Size of IPO to Maximum $130 Million and files an amended and restated preliminary prospectus
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TORONTO, January 17, 2022 /CNW/ – Starlight Western Canada Multi-Family Fund (No. 2) (the “Funds“) announced today that it has filed with the securities commissions in each of the provinces of Canada, other than Quebec, and obtained receipt of an amended and restated preliminary prospectus amending and restating the preliminary prospectus of the Fund dated November 30, 2021, for an initial public offering of Trust Units (the “Offer“). The Amended and Restated Preliminary Prospectus qualifies the distribution of a minimum of $42.0 million and a maximum of $130 million of Class A Units, Class B Units and Class C Units. The Fund will be the first limited life public vehicle launched by Starlight Group Property Holdings Inc. (“Stars light“) targeting properties in Canada raise funds through a prospectus offering. The Fund also announced today that it has received expressions of interest and commitments which, in aggregate, exceed the $42.0 million minimum bid amount.
The Fund was created on November 12, 2021 under an initial declaration of trust. The Fund was established for the primary purpose of acquiring, owning, operating and stabilizing, directly or indirectly, a portfolio of newer, newly constructed income-generating multi-family real estate properties that demonstrate value based on price and local supply and demand trends. achieve the Fund’s target metrics by increasing in-force rents relative to market rents, increasing revenue through ancillary revenue opportunities, and reducing operating expenses through active asset management. The Fund intends to acquire geographically diverse properties on Vancouver Island and on the mainland of the Province of British Columbia (the “Primary markets“). Following completion of the Placement, the Fund intends to acquire (i) 60 multi-family apartments located at 733 Goldstream Avenue in Langford, British Columbia and (ii) 251 multi-family apartments located at 6035 Linley Valley Drive and 4800 Uplands Drive in Nanaimo, British Columbia (the “Minimum Bid Portfolio“). In the event that the gross subscription proceeds of the Offering are $61,000,000 or more, the Fund also intends to indirectly acquire (i) 81 multi-family apartments located at 2699 Peatt Road in Langford, British Columbia, (ii) 60 multi-family dwellings located at 3400 Centennial Drive in Vernon, British Columbia and (iii) 43 multi-family apartments located at 1803 31A Street in Vernon, British Columbia (the “Additional fence properties“, such Additional Closing Properties, if acquired, with the Minimum Bid Portfolio, on “Initial Portfolio“). In the event that the Fund raises more than $42.0 million but less than $61.0 million, the Fund may acquire one or more, but not all, of the Additional Closing Properties. The balance of the net proceeds of the placement will be used to subsequently acquire one or more additional income-generating multi-family real estate properties in the primary markets, in accordance with the principal objective of the Fund.
Starlight is the promoter of the Fund and a subsidiary of Starlight will act as the manager of the Fund. Starlight currently owns and/or manages $25.0 billion of assets in Canada and United States, comprising more than 900 properties, approximately 70,000 multi-family dwellings (of which approximately 60,000 multi-family dwellings are located in Canada spread across seven provinces and three territories, with an approximate current value of $19.0 billion), and approximately 9,000,000 square feet of retail space at Canada through various entities 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 units under management worth approximately $3.2 billion. Starlight has extensive experience supervising and working with listed entities and currently provides services to four listed entities: True North Commercial REIT (TSX: TNT.UN), Northview Canadian High Yield Residential Fund (TSX: NHF.UN), Starlight US Multi-Family (No. 2) Core Plus Fund (TSX-V: SCPT.A and SCPT.U) and Starlight US Residential Fund (TSX-V: SURF.A and SURF.U). Starlight has been among North America most active real estate investors since its inception in 1995 and employs approximately 339 professionals. Starlight has concluded transactions with a total value of more than $38.0 billion, with a transaction volume of approximately 130,000 residential suites with more than $9.0 billion invested capital.
The Fund has received expressions of interest from senior management of Starlight and certain investors known to the Fund Manager to subscribe for a minimum of $10.0 million of Class C units. The syndicate of agents for the placement is led by CIBC World Markets Inc. and includes Wellington-Altus Private Wealth Inc., Scotia Capital Inc., Canaccord Genuity Corp., BMO Nesbitt Burns Inc., Financial Bank National Inc., Richardson Wealth Limited, Desjardins Securities Inc., Echelon Wealth Partners Inc., iA Private Management Inc., Laurentian Bank Securities Inc. and Raymond James Ltd. (collectively, the “Officers“).
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of the Fund in United States, and there will be no sale of securities of the Fund in any jurisdiction where such offer, solicitation or sale would be unlawful. 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 United States lack of registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
An amended and restated preliminary prospectus containing important information about these securities has been filed with the securities commissions or similar authorities in each of the provinces of Canada, other than Quebec. The amended and restated preliminary prospectus is still subject to addition or modification. Copies of the amended and restated preliminary prospectus may be obtained from any of the Agents and are available on SEDAR at www.sedar.com. There will be no sale or acceptance of an offer to buy securities until a receipt for the final prospectus has been issued.
This press release contains statements that include forward-looking information within the meaning of Canadian securities laws. These forward-looking statements reflect the Fund’s and Starlight’s current expectations regarding future events, including statements regarding the use of the proceeds of the Offering, the timing of the Fund’s acquisition of properties, the acquisition of additional closing properties and Starlight’s senior management underwriting. In some cases, forward-looking statements may be identified by words such as “may”, “could”, “will”, “could”, “should”, “would occur”, “would occur”, “expect “, “anticipate”, “anticipate”, “believe”, “intend”, “seek”, “aim”, “estimate”, “target”, “project”, “predict”, “plan”, ” potential”, “continue”, “probable”, “program”, or their negative form or other similar expressions concerning matters which are not historical facts.
Important factors and assumptions used by the Fund’s management in developing forward-looking information include, but are not limited to: the ability to deploy the remaining proceeds of the offering, if any, to acquire additional properties; the Fund’s current expectations regarding: 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 regulations regarding tenants or rents of properties the Fund intends to acquire due to COVID-19 or otherwise; the availability of residential properties for acquisition (other than the initial portfolio) and the price at which such properties may be acquired; the intention of the Fund to acquire the Additional Closing Properties if the gross subscription proceeds of the Offering are $61.0 million or larger; the availability of mortgage financing and current interest rates; the capital structure of the Fund; the economic and political environment in British Columbia; and government regulations or tax laws. Although management considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect.
Although management believes that the expectations reflected in these forward-looking statements are reasonable and represent the Fund’s internal projections, expectations and beliefs at the current time, these statements involve known and unknown risks and uncertainties which 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. These factors include the risks identified in the Amended and Restated Preliminary Prospectus, including under the heading “Risk Factors” thereof, as well as, among others, the risks relating to the availability of properties suitable for purchase by the Fund, the availability of mortgage loans, the financing of these properties and general economic and market factors, including the impact of COVID-19, interest rates, potential purchasers of real estate, business competition , the use of derivatives, changes in government regulations or tax laws, and environmental risks . Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the Fund undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. after the date the statements are made or to reflect the occurrence of unforeseen events.
SOURCE Starlight Western Canadian Multi-Family Fund (#2)
For further information: Daniel Drimmer, President and CEO, Starlight Investments, +1-416-234-8444, [email protected]; Martin Liddell, CFO, Starlight Investments, +1-647-729-2588, [email protected]