Real estate investment firm finalizes $4.9-billion transaction, announces launch of new high-yield fund
Starlight Investments and KingSett Capital have finalized their acquisition of NorthView Apartment Real Estate Investment Trust in a transaction valued at $4.9 billion.
“Since we announced the deal in February of this year, Northview has been a solid, steady performer in an otherwise extraordinary time, proving itself to be a markedly resilient portfolio of residential properties,” KingSett Chief Investment Officer Rob Kumer said in a statement. “We are pleased to be aligned with Starlight, an industry leader, and look forward to working together to create value in the years to come.”
Starlight President and CEO Daniel Drimmer echoed the sentiment, highlighting his firm’s close collaboration with KingSett to close “the largest ever Canadian multi-residential REIT transaction during these unprecedented times.”
Connected with the transaction, Starlight announced Northview Canadian High Yield Residential Fund, a newly formed, three-year closed end fund. Set to be listed on the TSX under the symbol NHF.UN, the fund holds a geographically diversified portfolio of properties located primarily in secondary markets within British Columbia, Alberta, Saskatchewan, Québec, New Brunswick, Newfoundland and Labrador, the Northwest Territories and Nunavut.
Its initial portfolio includes roughly 10,900 multi-residential suites, roughly 1,100,000 square feet of commercial real estate, and an estimated 340 execusuites. A significant number of leases within the portfolio are held with federal, provincial, and territorial governments as well as credit-rated corporations.
“While we are extremely pleased to be acquiring Northview's high-quality portfolio, we are excited that investors can continue to participate in a portion of Northview's portfolio through the Fund with an expected market capitalization of approximately $430 million,” Drimmer said.
“We also welcome all the exceptional talent from Northview who are joining Starlight and the Fund, as they will help continue to build on our tenant focus by maintaining high-quality, well-operated and sustainable buildings,” he added.
