/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. ALL AMOUNTS ARE IN UNITED STATES ("U.S.") DOLLARS./
TORONTO, Oct. 16, 2020 /CNW/ - Starlight U.S. Multi-Family
(No.1) Core Plus Fund (TSXV: SCPO.UN) (the "Fund") announced today
that it has secured a U.S.$250M
credit facility (the "Credit Facility") to strategically reposition
its debt capital structure. The Fund has drawn US$127.7M on the Credit Facility to refinance
outstanding mortgages secured by three of its properties. The
remaining committed availability on the Credit Facility of
U.S.$122.3M provides the Fund with
significant financing capacity for future acquisitions and
refinancings.
"The Fund's Credit Facility
represents a major milestone for the Fund allowing for the
refinancing of the Fund's properties on very attractive terms and
providing significant financing capacity for future acquisition
growth," commented Martin Liddell,
the Fund's Chief Financial Officer
The Fund has obtained an initial advance of U.S.$127.7M under the Credit Facility and entered
into a new pooled mortgage secured by each of Grand Oak at Town
Park ("Grand Oak"), Southpoint Crossing ("Southpoint") and 401
Teravista ("Teravista") (the "Mortgage Refinancing"). The Credit
Facility has an initial four year term and interest only payments
until maturity at the U.S. 30-day Secured Overnight Financing Rate
("SOFR") + 2.35%, resulting in a weighted average interest rate on
the Mortgage Refinancing as at October 15,
2020 of 2.44%. The new pooled mortgage results in an
overall weighted average cost of debt for the Fund of 2.19% as at
October 15, 2020.
The Mortgage Refinancing proceeds were used primarily to repay
the existing mortgages payable at each of Grand Oak, Southpoint and
Teravista and to repay approximately $7.0M of the mortgage payable at the Fund's
Autumn Vista property. Upon completion of the above noted
transactions, the Mortgage Refinancing resulted in net proceeds to
the Fund of approximately U.S.$26.8M.
Following the Mortgage Refinancing, the Fund has approximately
U.S.$51.9M of cash available to
deploy. The Fund continues to evaluate opportunities to acquire
additional properties which are expected to be funded through a
combination of the Fund's cash position and availability under the
Credit Facility.
ABOUT STARLIGHT U.S. MULTI-FAMILY CORE PLUS (NO.1)
FUND
The Fund is a limited partnership formed under the Limited
Partnerships Act (Ontario) for
the primary purpose of indirectly acquiring, owning and operating a
portfolio of value-add, income producing rental properties in
the United States multi-family
real estate market. The Fund currently owns interests in five
properties, consisting of 1,558 suites with an average year of
construction in 2003.
For the Fund's complete condensed consolidated interim financial
statements and MD&A for the three and six months ended
June 30, 2020 and any other
information relating to the Fund, please visit www.sedar.com.
Further details regarding the Fund's unit performance and
distributions, market conditions where the Fund's properties are
located, performance by the Fund's properties and a capital
investment update are also available in the Fund's August 2020 Newsletter which is available on the
Fund's profile at www.starlightus.com.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute
forward-looking information within the meaning of Canadian
securities laws and which reflect the Fund's current expectations
regarding future events, including the overall financial
performance of the Fund and its properties, including the impact of
COVID-19 on the business and operations of the Fund and the Fund's
ability to acquire additional properties with the proceeds of the
initial public offering and the Credit Facility.
Forward-looking information is provided for the purposes of
assisting the reader in understanding the Fund's financial
performance, financial position and cash flows as at and for the
periods ended on certain dates and to present information about
management's current expectations and plans relating to the future
and readers are cautioned that such statements may not be
appropriate for other purposes. Forward-looking information may
relate to future results, the impact of COVID-19 on the Fund's
portfolio as well as the impact of COVID-19 on the markets in which
the Fund operates and the trading price of the Fund's listed units,
acquisitions utilizing with the proceeds of the initial public
offering and the Credit Facility, performance, achievements,
events, prospects or opportunities for the Fund or the real estate
industry and may include statements regarding the financial
position, business strategy, acquisitions, budgets, litigation,
projected costs, capital expenditures, financial results, occupancy
levels, AMR, taxes and plans and objectives of or involving the
Fund. In some cases, forward-looking information can be
identified by terms such as "may", "might", "will", "could",
"should", "would", "occur", "expect", "plan", "anticipate",
"believe", "intend", "seek", "aim", "estimate", "target", "goal",
"project", "predict", "forecast", "potential", "continue",
"likely", "schedule", or the negative thereof or other similar
expressions concerning matters that are not historical facts.
Forward-looking information necessarily involves known and
unknown risks and uncertainties, which may be general or specific
and which give rise to the possibility that expectations,
forecasts, predictions, projections or conclusions will not prove
to be accurate, assumptions may not be correct and objectives,
strategic goals and priorities may not be achieved. Those risks and
uncertainties include: the ability to deploy the remaining proceeds
from the initial public offering and the Credit Facility; the
impact of COVID-19 on the Fund's portfolio as well as the impact of
COVID-19 on the markets in which the Fund operates and the trading
price of the Fund's listed units; and the applicability of any
government regulation concerning the Fund's tenants or rents as a
result of COVID-19 or otherwise. A variety of factors, many of
which are beyond the Fund's control, affect the operations,
performance and results of the Fund and its business, and could
cause actual results to differ materially from current expectations
of estimated or anticipated events or results.
Information contained in forward-looking information is based
upon certain material assumptions that were applied in drawing a
conclusion or making a forecast or projection, including
management's perceptions of historical trends, current conditions
and expected future developments, as well as other considerations
that are believed to be appropriate in the circumstances, including
the following: the ability to deploy the remaining proceeds from
the initial public offering and the Credit Facility; the impact of
COVID-19 on the Fund's portfolio as well as the impact of COVID-19
on the markets in which the Fund operates and the trading price of
the Fund's listed units; the applicability of any government
regulation concerning the Fund's tenants or rents as a result of
COVID-19 or otherwise; the inventory of multi-family real estate
properties; the availability of properties for acquisition and the
price at, which such properties may be acquired; the availability
of mortgage financing and current interest rates; the ability to
complete value-add initiatives; the extent of competition for
properties; the population of multi-family real estate market
participants; assumptions about the markets in which the Fund
operates; the ability of Starlight Investments US AM Group LP, the
manager of the Fund, to manage and operate the properties; the
global and North American economic environment; foreign currency
exchange rates; and governmental regulations or tax laws.
The forward-looking information included in this press release
relate only to events or information as of the date on which the
statements are made in this press release. Except as specifically
required by applicable Canadian law, the Fund undertakes no
obligation to update or revise publicly any forward-looking
information, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Starlight U.S. Multi-Family (No. 1) Core Plus Fund