/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES./
TORONTO, June 28,
2024 /CNW/ - Starlight U.S. Residential Fund (TSXV:
SURF.A) (TSXV: SURF.U) (the "Fund") previously announced the
extension of the Fund's term to November
2025 in order to provide the Fund the opportunity to
capitalize on anticipated improvements in the real estate
investment market. The Fund announced today the completion of the
refinancing of Indigo Apartments which, along with the Fund's
intention to amend the Fund's credit facility ("Credit Facility")
which is expected to be completed in Q3 2024, allows the Fund to
enhance its liquidity position and further improve its ability to
benefit from ongoing improvements in the real estate investment
market.
The gross proceeds from the refinancing amount to approximately
$80.5M and were primarily used to
repay the existing first mortgage at Indigo Apartments and repay
approximately $14.7M towards the
Credit Facility. Approximately $62.2M of the proceeds relates to a new first
mortgage loan with the remaining $18.3M from an unsecured financing entered into
by a subsidiary of the Fund. The weighted average interest
rate for the interest only monthly payments is approximately 5.43%.
The unsecured financing has additional interest which is accrued
and payable upon repayment of such loan resulting in an all-in
weighted average interest rate for the Indigo refinancing
(including the accrued amount) of 7.25%.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release may constitute
forward-looking statements within the meaning of applicable
Canadian securities laws. These statements relate to future events
or the Fund's future performance. All statements other than
statements of historical fact may be forward-looking statements.
The use of any of the words "may", "might", "will", "could",
"should", "would", "expect", "plan", "anticipate", "believe",
"intend", "seek", "aim", "estimate", "target", "goal", "project",
"predict", "forecast", "potential", "continue", "likely" and
similar expressions are intended to identify forward-looking
statements. Forward-looking statements are often, but not always,
identified by such words. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements. In particular, and
without limiting the foregoing, this news release contains
forward-looking statements with respect to the Fund's intentions
with respect to amending its Credit Facility. Such forward-looking
information is based on certain assumptions and analysis made by
the Fund in light of its experience and perception of current
conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances. However,
whether actual results, performance or achievements will conform to
the Fund's expectations and predictions is subject to a number of
known and unknown risks and uncertainties which could cause actual
results to differ materially from the Fund's expectations. Further
information regarding the assumptions and risks inherent in the
making of the forward-looking statements can be found in the Fund's
2024 annual management's discuss and analysis, along with the
Fund's other public disclosure documents, available on SEDAR+
website at www.sedarplus.ca. The forward-looking information
included in this news release is expressly qualified in its
entirety by the foregoing cautionary statements. Unless otherwise
stated, the forward-looking information included in this news
release is made as of the date of this news release and the Fund
assumes no obligation to update or revise any forward-looking
information to reflect new events or circumstances, except as
required by law.
ABOUT STARLIGHT U.S. RESIDENTIAL FUND
The Fund is a "closed-end" fund formed under and governed by the
laws of the Province of Ontario,
pursuant to a declaration of trust dated September 23, 2021, as amended and restated The
Fund was established for the primary purpose of directly or
indirectly acquiring, owning and operating a portfolio primarily
composed of income producing residential properties in the U.S.
residential real estate market that can achieve significant
increases in rental rates as a result of undertaking high return,
value-add capital expenditures and active asset management. The
Fund owns interests in six multi-family properties consisting of
1,973 suites as well as a small portfolio of single-family rental
homes.
Please visit us at www.starlightinvest.com and connect with us
on LinkedIn at
www.linkedin.com/company/starlight-investments-ltd-
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. Residential Fund
