Starlight Investments Launches a $750 Million Canadian Multi-Family Fund with CIBC

Starlight Investments Launches a Canadian Core Multi-Family Fund



Starlight Investments ("Starlight") has officially announced the launch of the Starlight Canadian Core Multi-Family Fund, a newly established open-ended fund aimed at investing in and managing a diversified portfolio of high-quality, income-generating, purpose-built multi-family rental properties in Canada’s major urban markets. This new fund marks a significant milestone as Starlight’s first open investment vehicle focusing on residential real estate.

Initial Capital Investment


The fund is initiated with an initial capital contribution of CAD 415 million from funds managed by CIBC Asset Management Inc., enabling the first acquisition of purpose-built rental apartments worth a total of CAD 750 million. This partnership is set to attract further investments from institutional investors and accredited high-net-worth individuals through a feeder fund being established and managed by CIBC Asset Management Inc.

Investment Strategy


The fund's strategy emphasizes investment in newly constructed and fundamentally renovated multi-family rental properties located in key metropolitan areas across Canada. Highlighted locations include the Greater Toronto Area, the Golden Horseshoe region in Ontario, the Greater Vancouver Area, and the Greater Victoria area, along with other significant markets such as Calgary, Edmonton, Ottawa, Montreal, and Halifax.

According to Daniel Drimmer, the founder and CEO of Starlight Investments, the partnership with CIBC Global Asset Management is a vital step towards offering a premier Canadian Core Multi-Family Investment opportunity. The portfolio is designed to provide investors with institutional-quality returns supported by strong sector fundamentals.

Management Expertise


Starlight, leveraging its 30 years of experience and standing as Canada's largest owner of multi-family properties, will serve as the fund's manager. The expertise and execution at a sound institutional level position Starlight to effectively navigate the dynamics of the Canadian real estate market.

This initiative comes at a time when investors are increasingly looking for alternative investment options beyond publicly traded securities. Private real estate has shown to offer substantial diversification and attractive risk-adjusted returns, highlighting the relevance of such investment vehicles in current market conditions.

Eric Bélanger, CIBC’s Executive Vice-President and Head of Global Asset Management, remarked on the collaboration, emphasizing the growing interest from investors in Canadian residential properties and the value of aligning with a trusted leader in the multi-family management space.

About Starlight Investments


Founded and based in Toronto, Ontario, Starlight Investments is a leading global real estate investment and asset management firm. The company has extensive experience in the ownership, development, and management of over 70,000 multi-family homes and more than 7 million square feet of commercial space, with assets under management totalling CAD 30 billion. Starlight is committed to merging visionary curiosity with impactful investment strategies that benefit both investors and communities alike.

About CIBC


CIBC is one of North America's leading financial institutions, servicing over 14 million individual, business, and institutional clients. The bank offers a comprehensive range of banking, wealth management, and commercial banking services, with a strong emphasis on digital and in-branch access across Canada, the U.S., and internationally.

Conclusion


The launch of the Starlight Canadian Core Multi-Family Fund represents a strategic advancement in the residential real estate sector, appealing to a diverse array of investors seeking to capitalize on the lucrative opportunities within the Canadian housing market. As the partnership with CIBC unfolds, it stands to create considerable growth in the portfolio and offer significant returns for participants in the investment landscape.

Topics Financial Services & Investing)

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