Completion of Property Sale and Special Distribution Announcement

Starlight U.S. Multi-Family Fund Executes Property Sale

Starlight U.S. Multi-Family (No. 2) Core Plus Fund (TSXV: SCPT) has successfully completed the sale of 400 multi-family residential suites in a landmark transaction. This Class ‘A’ property, constructed in 2018, was sold for an impressive $133 million, demonstrating the strong market demand for quality residential assets.

Details of the Property Sale

Located in a prime area, the property sale is anticipated to enhance the fund's financial structure. The proceeds from this transaction will be strategically allocated to repay the existing mortgage debt of approximately $96.2 million, alongside other financial obligations. This aligns with the fund’s ongoing commitment to maintain a solid financial foundation while optimizing its investment portfolio.

Special Distribution Announcement

In conjunction with the sale, the Fund is excited to announce a special distribution for its Class A, C, D, E, F, G, and U Units. Shareholders will receive payments of C$2.7500 for Class A Units, C$2.9374 for Class C, and US$2.6201 for Class E Units, with payments scheduled for July 15, 2025.

Distribution Procedure

The payment will be made to holders recorded as of July 8, 2025. This innovative approach aims to deliver precise returns to investors, reflecting the proceeds from the recent sale while keeping them informed of the fund's financial health.

Financial Position After the Sale

The fund's net asset value per unit, previously disclosed at $3.50, will undergo an adjustment based on the distribution amount. This reflects the fund's approach to maintaining transparency with its investors regarding financial movements within the portfolio.

Current Portfolio and Future Outlook

Following this sale, the Fund will continue to manage high-quality assets, including a 275-suite property in Orlando and a 320-suite asset in Raleigh, ensuring a diversified portfolio. The Fund aims to strategically expand its investment opportunities while maintaining robust financial health.

Asset Management Strategy

To navigate the changing market landscape effectively, Starlight is continuously negotiating with lenders to ensure favorable loan terms and extend current loan agreements. This proactive strategy underlines the Fund's dedication to safeguarding investor interests while seeking potential growth avenues.

About Starlight Investments

Starlight Investments operates as a prominent player in the global real estate investment and asset management sector. With a strong focus on building value and creating impactful returns for stakeholders, Starlight manages over CAD $30 billion in assets across diverse real estate sectors. The firm thrives on a philosophy of sustained investment where community and investor outcomes are prioritized.

Conclusion

The successful sale of the multi-family property and the strategic distribution to shareholders marks an exciting chapter for Starlight U.S. Multi-Family (No. 2) Core Plus Fund. As the company continues to evolve and adapt to market changes, stakeholders can expect further positive developments aimed at strengthening their investment experience.

Frequently Asked Questions

What is the significance of the property sale?

The sale was crucial for repaying existing mortgage debt and optimizing the fund's overall financial position, which strengthens its investment strategy.

When will the special distribution be paid?

The special distribution is scheduled to be paid on July 15, 2025, to holders of record as of July 8, 2025.

What are the distribution amounts for each unit class?

The distribution amounts include C$2.7500 for Class A Units and US$2.6201 for Class E Units, among others.

How does this sale impact the fund's net asset value?

The net asset value per unit will be adjusted following the distribution, affecting the previously disclosed value of $3.50 per unit.

What strategies does Starlight Investments implement?

Starlight focuses on acquiring quality assets, negotiating favorable loan terms, and maintaining a diversified portfolio approach to capitalize on market opportunities.

About The Author

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