Starlight Western Canada Multi-Family (No. 2) Fund and Starlight Western Canada Multi-Family Limited Partnership have agreed to consolidate their assets into a single investment platform valued at approximately $639.4 million.

The two funds are controlled by Toronto-based Starlight Investments, an integrated real estate investor, developer and manager that specializes in rental-apartment assets.

The new vehicle will encompass 15 properties totalling 1,413 multi-family units across British Columbia. The merger aims to create a larger, more diversified asset pool with improved access to capital, the potential to reduce borrowing costs and greater opportunity for value creation through scale.

“Under Starlight’s management, the value of the assets in each fund has increased since inception of each respective fund,” said Daniel Drimmer CEO of Starlight and the two funds. “The consolidation of the assets into a single platform is an opportunity to work towards increasing value in a larger, more diversified vehicle with a larger asset pool and with increased potential for a successful exit as a result of the enhanced scale of the platform.”

Upon completion, investors in both entities will indirectly hold interests in all consolidated assets, with Fund 2 expected to remain in place as a reporting issuer and control a majority equity stake in the platform. Fund 1 is slated to remain a private limited partnership.

The merged structure is designed to provide upside potential through scale efficiencies, potential future capital raises and continued management by a Starlight affiliate.

Pictured: Starlight multi-family in Victoria, B.C. slated for expansion.

Rendering: Courtesy of Starlight Investments