- What Starlight Investments established a new open-end fund
- Why It will focus on multifamily assets in major Canadian markets
- What next The vehicle will undertake an initial acquisition of $750m
Starlight Investments has launched an open-end fund to buy multifamily properties across Canada’s largest urban markets, with an eye toward a $750m initial acquisition.
The Canadian Core Multi-Family Fund has an initial equity investment of $415m from funds managed by CIBC Asset Management. That will help fund the initial acquisition of purpose-built rental apartments.
Starlight did not disclose the location of the initial investment but said it will focus on newly built and substantially renovated properties in the Greater Toronto Area, Ontario’s Golden Horseshoe region, Greater Vancouver, Greater Victoria, Calgary, Edmonton, Ottawa, Montréal and Halifax.
The fund marks Starlight’s first residential-focused, open-end investment vehicle. It is expected to grow over time with additional backing from institutional investors and accredited individual investors, via feeder funds to be established and managed by CIBC.
“Investors are increasingly seeking alternative investment opportunities beyond publicly traded securities, and private real estate continues to offer strong diversification and attractive risk-adjusted returns,” Eric Bélanger, executive vice president and head of CIBC Global Asset Management, said in a release.
Starlight is a Toronto-based real estate investment, development and asset management firm with $30bn in assets under management.
