Starlight U.S. Multi-Family Core Fund Completes Acquisition of Initial Properties

Not for dissemination in the United States

TORONTO, April 23, 2013 /CNW/ - Starlight U.S. Multi-Family Core Fund (the "Fund") (TSXV: UMF.A; UMF.U) announced today that it has successfully completed the acquisition of a portfolio of three multi-family residential properties (the "Initial Portfolio") that comprise a total of 740 suites, all of which are located in Texas for an aggregate purchase price of approximately US$80.58 million, which was satisfied by way of approximately US$29.15 million in cash from the proceeds of the Fund's recent initial public offering, US$17.50 million in cash from a new mortgage financing and the assumption of mortgages in the principal amount of approximately US$33.93 million.

The Fund indirectly acquired Falls at Copper Lake, a property located approximately 37 kilometres northwest of downtown Houston at 9140 Highway 6 North in Houston, Texas.  In connection with the acquisition, the Fund assumed an existing first mortgage loan on the property in the amount of US$24.76 million (as of April 1, 2013) for a five year term at an interest rate of 3.84% per annum.  The property is comprised of 374 apartment suites, ranging in size from one bedroom to three bedrooms.  The complex consists of 29 two to three storey, walk-up buildings on an 18.179 acre site and includes a man-made lake as well as an outdoor swimming pool with a hot tub.  Additional amenities include a fitness centre, a theatre room, a business centre, private balconies, decks or patios, walk-in closets, granite countertops, dishwashers and alarm systems.  The property is managed by Greystar Real Estate Partners, the largest third party multi-family property manager in the U.S.

The Fund also indirectly acquired Villages of Towne Lake, a property located approximately 32 kilometres southeast of downtown Houston at 4055 Village Drive in Pearland, Texas.  In connection with the acquisition, the Fund assumed an existing first mortgage loan on the property in the amount of US$9.17 million (as of April 1, 2013) for a 10-year term at an interest rate of 4.02% per annum.  The property is comprised of 126 apartment suites, ranging in size from one bedroom to two bedrooms.  The complex consists of 21 single storey buildings on a 14.529 acre site and is a seniors apartment community (55+) with an average resident age of 75 years old.  Amenities include a swimming pool, a nine acre stocked lake, covered parking, community gardens, a bocce ball court, an outdoor living space with fireplace and grill, business, hobby and fitness centres, and a resident activity lounge. The property is managed by Pinnacle Family of Companies, the fourth largest third party multi-family property manager in the U.S.

The Fund also indirectly acquired Bridgemoor at Denton, a property located approximately 60 kilometres northwest of downtown Dallas at 2801 Spencer Road in Denton, Texas.  In connection with the acquisition, the Fund incurred a new mortgage loan on the property in the amount of US$17.50 million for a three year term at an interest rate of LIBOR + 2.50% per annum.  The property is comprised of 240 apartment suites, ranging in size from one bedroom to two bedrooms.  The complex consists of 32 single storey buildings on a 19.137 acre site and is a seniors apartments community (55+) with an average resident age of 70 years old.  Amenities include a swimming pool, a hot tub, a leasable clubroom, a business centre, a fitness centre, a movie theater, a game room with poker and pool tables, an on-site beauty salon and dog grooming room (with third-party services available).  The property is also managed by Pinnacle Family of Companies.

The Fund has provided notice to the TSX Venture Exchange of the completion of its acquisition of the Initial Portfolio and expects trading of its Class A Units and Class U Units to commence tomorrow.

About Starlight U.S. Multi-Family Core 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 diversified income producing rental properties in the U.S. multi-family real estate market.

This press release contains statements that may constitute forward-looking information within the meaning of Canadian securities laws and which reflect the Fund's current expectations regarding future events, including the commencement of trading of securities of the Fund on the TSX Venture Exchange. The forward-looking statements involve risks and uncertainties, including those set forth in the Fund's final prospectus dated March 31, 2013, including under the section "Risk Factors", a copy of which can be obtained at www.sedar.com. Actual results could differ materially from those projected herein. Material factors and assumptions were used by management of the Fund to develop the forward-looking information. Investors are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the Fund undertakes no obligation to update or revise publicly any forward-looking statements, 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 TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Starlight U.S. Multi-Family Core Fund

Evan Kirsh
President, Starlight U.S. Multi-Family Core Fund
647-725-0417
[email protected]