TORONTO, Dec. 11, 2018 /CNW/ - Starlight Investments Capital LP ("Starlight Capital" or the "Investment Manager") is pleased to announce that a final prospectus for Starlight Hybrid Global Real Assets Trust (the "Trust") has been filed with, and a receipt therefor issued by, the securities regulators of all of the provinces and territories of Canada for an initial public offering of Series A Units, Series C Units and/or Series F Units of the Trust (collectively, the "Units") at an offering price of $10.00 per Unit (the "Offering"). The Offering is expected to close on or about December 13, 2018.
The Trust's investment objective is to provide unitholders with stable monthly cash distributions and long-term capital appreciation through exposure to institutional quality real assets in the global real estate and global infrastructure sectors.
The Trust, through the Real Assets LP (as defined below), provides access to an actively managed portfolio of listed global real estate and infrastructure securities that have shown relatively low correlations to traditional equities. The Investment Manager believes that many of the securities the Real Assets LP could potentially invest in provide exposure to asset classes and sectors that are currently unavailable in the Canadian market place.
The Trust, initially through the Starlight Fund and EICLP (each as defined below), also provides access to private real estate and infrastructure investments that have the potential to provide long term returns that are uncorrelated to traditional equity markets. These investment opportunities have historically been offered to institutional investors and the Investment Manager believes they offer unique return/risk attributes to investors.
The Management Fee payable to the manager of the Trust, Starlight Investments Capital GP Inc., will be waived until the Net Asset Value per Unit of the applicable series is greater than the initial offering price of $10.00 per Unit.
The Trust will target $0.50 gross distributions per Unit per annum (5.0% yield based on the offering price per Unit) at the discretion of the Trustees, to be paid on a monthly basis commencing February 2019.
In accordance with the declaration of trust, the Trust provides investors with the ability to redesignate Series A Units into Series C Units quarterly. The Series F Units and Series C Units are unlisted and carried at NAV, which the Trust will report monthly. The Series F Units will be automatically redesignated into Series A Units, or Series C Units at the request of unitholders, on March 29, 2019.
To achieve its objectives, the Trust will invest no less than 60% of the net capital raised into a subsidiary, Starlight Global Real Assets LP ("Real Assets LP"), that will hold an actively managed global portfolio of real estate and infrastructure securities, targeting issuers primarily in OECD countries, managed by Dennis Mitchell of Starlight Capital, the investment manager of the Real Assets LP. The Trust will also invest in global real estate properties and global infrastructure assets, beginning with allocations of up to 20% of the net capital raised to each of the Starlight Canadian Residential Growth Fund (the "Starlight Fund"), a newly created fund to be managed by Daniel Drimmer of Starlight Group Property Holdings Inc., and EagleCrest Infrastructure Canada LP ("EICLP"), managed by Fiera Infrastructure Inc. The Starlight Fund will make direct investments in Canadian multi-residential real estate properties and portfolios. EICLP holds investments in 24 infrastructure assets located in Canada, the U.S., the U.K. and Spain.
The Aequitas NEO Exchange (the "Exchange") has conditionally approved the listing of the Series A Units under the ticker SCHG.UN. Listing of the Series A Units is subject to the Trust fulfilling all of the requirements of the Exchange.
The Offering is being made through a syndicate of agents co-led by CIBC Capital Markets and RBC Capital Markets, and including National Bank Financial Inc., Scotiabank, BMO Capital Markets, TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Industrial Alliance Securities Inc., Manulife Securities Incorporated, Desjardins Securities Inc., Mackie Research Capital Corporation and Echelon Wealth Partners Inc. (collectively, the "Agents").
The Offering is only made by prospectus. The prospectus contains important detailed information about the Units being offered. Copies of the prospectus may be obtained from one of the Agents noted above. Investors should read the prospectus before making an investment decision.
About Starlight Capital and Starlight Investments
Starlight Capital is an independent asset management firm offering mutual funds, exchange-traded funds and structured products. Our goal is to deliver superior risk adjusted returns to investors through a disciplined investment approach, Focused Business Investing. Starlight Capital is a wholly-owned subsidiary of Starlight Investments. Starlight Investments is a privately-held, full service, real estate investment and asset management company. The firm manages over $9.0 billion of assets on behalf of institutional joint ventures as well as publicly listed REITs, closed end funds and investment funds and is driven by an experienced team of over 150 professionals. Please visit us at www.starlightcapital.com and connect with us on LinkedIn.
SOURCE Starlight Capital
For further information: Dennis Mitchell, Chief Executive Officer & Chief Investment Officer, 416-855-2642, [email protected]; Lou Russo, Senior Vice President, National Sales & Distribution, 416-565-1619, [email protected]