VICTORIA – Starlight Western Canada Multi-Family (No. 2) Fund announced that it has raised its maximum offering size and completed its initial public 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. 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. 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.
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, BC, (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, BC and (v) 43 multi-family suites located at 1803 31A Street in Vernon, BC. 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.