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TORONTO, Feb. 14, 2018 /CNW/ - Starlight U.S.
Multi-Family (No. 5) Core Fund (TSX.V: STUS.A, STUS.U) (the "Fund")
announced today it has sold The Villages at Sunset Ridge, a class
"A", garden-style apartment community located in northeast
Houston.
Pursuant to a purchase and sale agreement, Sunset Ridge
Acquisition LLC, an indirect wholly owned subsidiary of the Fund,
sold The Villages at Sunset Ridge for the sale price of
approximately US$29.50 million, with
the purchaser assuming the existing financing. The proceeds
from the sale are expected to be utilized on a tax-deferred basis
for acquisitions of properties that are expected to improve the
Fund's geographical diversification, average portfolio vintage, and
net operating income ("NOI") growth opportunities.
"The sale of The Villages at Sunset Ridge completes the Fund's
execution of its business plan to balance its exposure in any one
market," commented Evan Kirsh, the
Fund's President. "We intend to recycle the proceeds into a
replacement property on a tax-deferred basis in a market that will
enhance the Fund's geographical diversity and improve its portfolio
vintage."
About Starlight U.S. Multi-Family (No. 5) 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. The Fund currently owns 23
properties, consisting of 7,185 suites with an average year of
completion in 2012.
Non-IFRS Financial Measures
NOI does not have a standardized definition prescribed by
International Financial Reporting Standards ("IFRS") and is,
therefore, unlikely to be comparable to similar measures presented
by other reporting issuers. The Fund uses this measure to better
assess the Fund's underlying performance and financial position and
provides this additional measure so that investors may do the same.
Details on non-IFRS measures are set out in the Fund's management's
discussion and analysis for the period ended September 30, 2017 that is available on the
Fund's profile on SEDAR at www.sedar.com.
About Starlight U.S. Multi-Family (No. 5) Core Fund
This news release contains statements that may constitute
forward-looking statements within the meaning of Canadian
securities laws and which reflect the Fund's current expectations
regarding future events, including statements concerning future
acquisitions and their impact on the Fund's geographical
diversification, average portfolio vintage and NOI growth
opportunities. Particularly, statements regarding future results,
performance, achievements, prospects or opportunities for the Fund
or the real estate industry are forward-looking statements. In some
cases, forward-looking statements can be identified by terms such
as "may", "might", "will", "could", "should", "would", "occur",
"expect", "plan", "anticipate", "believe", "intend", "seek", "aim",
"estimate", "target", "project", "predict", "forecast",
"potential", "continue", "likely", "schedule", or the negative
thereof or other similar expressions concerning matters that are
not historical facts.
The forward-looking statements in this news release involve
risks and uncertainties, including those set forth in the Fund's
materials filed with the Canadian securities regulatory authorities
from time to time at www.sedar.com. Actual results could differ
materially from those projected herein. Those risks and
uncertainties include, among other things, risks related to
reliance on a wholly-owned subsidiary of Starlight Property
Holdings Inc., the Fund's manager; the experience of the Fund's
officers and directors; substitutes for residential real estate
rental suites; reliance on property management, competition for
real property investments and tenants, and U.S. market factors.
Information contained in forward-looking statements is based
upon certain material assumptions that were applied in developing
such forward-looking statements 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 of the Fund to complete future acquisitions and their
impact on the Fund's geographical diversification, average
portfolio vintage, and NOI growth opportunities; the inventory of
multi-family real estate properties; the availability of mortgage
financing and current interest rates; 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 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. Readers are cautioned against placing undue reliance on
forward-looking statements. Except as specifically required by
applicable Canadian laws, the Fund undertakes no obligation to
update or revise publicly any forward-looking 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. 5) Core Fund