Starlight U.S. Multi-Family Core Fund said Thursday it has filed a final prospectus for a domestic initial public offering of limited partnership units. The offering is expected to close on April 18.
The final prospectus qualifies the distribution of a minimum of US$37.5 million and a maximum of US$75 million units.
Class A, C, F and I units are priced at $10 per unit and Class U units are prices at US$10 per unit.
Toronto-based Starlight Investments Ltd. is the promoter of the fund and will also act as manager of the fund. Starlight is a privately held real estate investment management company that currently manages approximately $3 billion of Canadian commercial and residential properties.
The fund has received commitments from an affiliate of Starlight, principals of Starlight and certain other investors known to Starlight to subscribe for a minimum of US$7.5 million Class C units. The fund has also received a commitment from a Canadian fund manager, on behalf of funds managed by it, to subscribe for approximately 10% of the gross proceeds of the offering.
The fund has received conditional approval from the TSX Venture Exchange to list the Class A (TSXV:UMF.A) and U (TSVX:UMF.U) units.
The fund was established 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.
Following completion of the offering, the fund will have acquired a portfolio of three multi-family residential properties that comprise a total of 740 suites, all of which are located in Texas for an aggregate purchase price of approximately US$80.58 million.
The syndicate of agents for the offering is being led by CIBC and includes National Bank Financial Inc., Raymond James Ltd., Scotiabank, GMP Securities L.P., Macquarie Private Wealth Inc., Canaccord Genuity Corp., Desjardins Securities Inc. and Dundee Securities Ltd.