Starlight Investments plans to acquire $750 million worth of multi-family real estate assets in major Canadian markets and Victoria, B.C., through a newly established investment fund.

The company has partnered with CIBC on the Starlight Canadian Core Multi-Family Fund. The open-ended fund is focused on acquiring and managing a diversified portfolio of high-quality, income-producing, purpose-built-rental (PBR) housing properties across Canada’s largest urban markets, said Starlight.

The investment vehicle will launch with an initial cornerstone equity deployment of $415 million from investment funds managed by CIBC Asset Management. That will enable the fund’s initial acquisition of the $750 million of purpose-built rental apartments. In the future, the evergreen fund will scale through additional investments from institutional investors, and from accredited individual investors exclusively through a feeder fund to be established and managed by CIBC Asset Management.

At first, the fund will invest in newly built and substantially renovated PBR properties in  on the Greater Toronto Area, Ontario’s Golden Horseshoe region, Greater Vancouver, and Greater Victoria. The fund will also invest in other major Canadian markets, including Calgary, Edmonton, Ottawa, Montreal, and Halifax.

“Starlight is pleased to announce our strategic relationship with CIBC Global Asset Management to deliver a best-in-class Canadian core multi-family investment offering,” said Daniel Drimmer, Starlight’s founder and CEO. “The fund is designed to offer investors an institutional-quality portfolio with stable income, underpinned by robust fundamentals in the sector.”

Starlight will manage the fund, which is the Toronto-based company’s Starlight’s first residential-focused, open-ended investment vehicle. The firm ranks as Canada’s largest multi-family investor and also invests globally.

Pictured: Starlight-owned apartment building in Langley, B.C.

Photo: Starlight Investments