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TORONTO, Nov. 1, 2020 /CNW/ - Northview Canadian High
Yield Residential Fund (the "Fund") announced today that it
has completed the previously announced acquisition (the
"Acquisition") from Northview Apartment Real Estate
Investment Trust ("Northview Apartment REIT") of a
geographically diversified portfolio (the "Initial
Portfolio") located primarily in secondary markets within
British Columbia, Alberta, Saskatchewan, Québec, New Brunswick, Newfoundland and Labrador, the Northwest Territories and Nunavut (the "Secondary Markets"). The
Initial Portfolio comprises approximately 10,900 multi-residential
suites, approximately 1,100,000 square feet of commercial real
estate and approximately 340 execusuites located in the Secondary
Markets with high corporate demand for housing, with a significant
number of leases with federal, provincial and territorial
governments as well as credit-rated corporations.
In connection with the Acquisition, the Fund today also
announced that it has completed its initial public offering (the
"Offering") of class A trust units ("Class A Units")
and class F trust units ("Class F Units"). Under the
Offering and in connection with the Acquisition, the Fund has
issued an aggregate of $430,000,000
of trust units, comprising 5,309,025 Class A Units, 25,090,411
class C trust units ("Class C Units") and 4,000,564
Class F Units. The Class C Units were issued to existing
unitholders of Northview Apartment REIT pursuant to the Acquisition
and in concurrent private placements to, among others, an affiliate
of Starlight Group Property Holdings Inc. ("Starlight
Group"), funds controlled by KingSett Capital and AIMCo Realty
Investors LP.
The Class A Units and Class F Units of the Fund were offered to
the public through a syndicate of agents led by CIBC World Markets
Inc. and which included RBC Dominion Securities Inc., Scotia
Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., National
Bank Financial Inc., Raymond James Ltd., Canaccord Genuity Corp.,
Richardson GMP Limited, Desjardins Securities Inc., Industrial
Alliance Securities Inc. and Laurentian Bank Securities Inc.
(collectively, the "Agents").
The Fund also announced today that it has received final
approval for the listing of the Class A Units on the Toronto Stock
Exchange (under the symbol "NHF"). The Class C Units and Class F
Units will not be listed by the Fund on any stock exchange, but the
Class C Units and Class F Units are each convertible into Class A
Units of the Fund and the Class C Units are also convertible into
Class F Units, subject in each case to compliance with the terms
and conditions in the Fund's declaration of trust. The Class A
Units are also convertible into Class F Units. The Fund expects its
Class A Units to commence trading on or about November 2, 2020.
Effective on closing of the Offering, Todd Cook was appointed Chief Executive Officer
of the Fund, and Leslie Veiner was
appointed Chief Financial Officer of the Fund.
The securities described herein have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "1933 Act"), and may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements of the 1933 Act and applicable state securities
laws.
About Starlight Group
Starlight Group is the promoter of the Fund and an
affiliate of Starlight Group will act as manager of the Fund.
Starlight Group is a privately held Toronto-based, full service, multi-family and
commercial real estate investment and asset management company
driven by an experienced team of over 300 professionals. The
company currently manages over $20.0
billion of direct real estate as well as real estate
investment securities. Investment vehicles include institutional
joint ventures, True North Commercial REIT, Starlight U.S.
Multi-Family Funds, the Fund and Starlight Capital Funds. Starlight
Group's portfolio consists of approximately 70,000
multi-residential units across Canada and the U.S. and over 8.0 million
square feet of commercial properties. Please visit us at
www.starlightinvest.com and connect with us on LinkedIn at
www.linkedin.com/company/starlight-investments-ltd-
About Northview Canadian High Yield Residential Fund
The Fund is a "closed-end fund" established pursuant to a
declaration of trust under the laws of the Province of Ontario for the primary purpose of indirectly
acquiring, owning and operating a portfolio of income producing
rental properties in secondary markets within Canada.
Forward-looking Statements
This news release contains statements that include
forward-looking information within the meaning of Canadian
securities laws. These forward-looking statements reflect the
current expectations of the Fund and Starlight Group regarding
future events, including statements concerning the commencement of
trading of the Class A Units on the Exchange. 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.
Material factors and assumptions used by management of the Fund
to develop the forward-looking information include, but are not
limited to, the Fund's current expectations about: vacancy and
rental growth rates in the multi-residential suites, commercial
real estate and execusuites markets in the Secondary Markets;
demographic trends in Canada; the
impact of COVID-19 on the Initial Portfolio and the Secondary
Markets; the occupancy level of the Initial Portfolio; the
continued receipt of rental payments in line with historical
collections; the applicability of any government regulation
concerning tenants or rents as a result of COVID-19; the value and
timing of any recapitalization event; the availability of mortgage
financing and future interest rates; the capital structure of the
Fund; the growth in net operating income generated from the asset
management strategy; the population of multi-residential real
estate market participants; assumptions about the markets in which
the Fund intends to operate; expenditures and fees in connection
with the maintenance, operation and administration of the
properties of the Fund; the ability of the manager of the Fund to
manage and operate the properties of the Fund; the global and North
American economic environment; and governmental regulations or tax
laws. While management considers these assumptions to be reasonable
based on currently available information, they may prove to be
incorrect.
Although management believes the expectations reflected in such
forward-looking statements are reasonable and represent the Fund's
internal projections, expectations and beliefs at this time, such
statements involve known and unknown risks and uncertainties that
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, that assumptions may not
be correct and that objectives, strategic goals and priorities may
not be achieved. A variety of factors, many of which are beyond the
Fund's control, could cause actual results in future periods to
differ materially from current expectations of estimated or
anticipated events or results expressed or implied by such
forward-looking statements. Such factors include the risks
identified in the Fund's final prospectus dated September 29, 2020, including under the heading
"Risk Factors" therein, as well as, among other things, risks
related to the availability of mortgage financing for the Initial
Portfolio, general economic and market factors, including interest
rates, prospective purchasers of real estate, business competition,
changes in government regulations or income tax laws and the impact
of the ongoing COVID-19 pandemic. Readers 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.
SOURCE Northview Canadian High Yield Residential Fund