Starlight Investments has acquired three rental communities under development in the U.K. for over C$900 million. The projects comprise 1,541 apartments, expanding Starlight’s interest in the European residential market.
The Toronto-based developer and asset manager is acquiring two towers in Manchester from British developer Renaker and a mid-rise property in the eastern town of Basildon. Each of the projects is currently under development.
Starlight has grown its U.K. portfolio to over 3,300 units with the transaction, the company said in a release.
“These acquisitions reflect our strategy to create dynamic communities and high-quality rental housing in growing markets across the United Kingdom,” Daniel Drimmer, founder and CEO of Starlight, said in the announcement.
Noting the strong fundamentals of the U.K. residential market, Starlight launched a $1-billion purpose-built rental platform with a group of global institutional partners in 2023. It started by acquiring three communities in Manchester, Liverpool and Ashford totalling 922 units and valued at approximately $381 million.
Starlight holds approximately $30 billion in assets under management across a series of investment vehicles in residential and commercial buildings, with a portfolio of over 71,000 multiresidential suites in North America.
Starlight’s Manchester, Basildon acquisitions
The tallest property in these new acquisitions is a 60-storey, 532-unit tower being built in the Castlefield conservation area on the bank of the River Irwell in Manchester. Set to offer a variety of one-, two- and three-bedroom apartments, it offers amenities such as an indoor pool, co-working areas, a gym, resident lounges and an outdoor terrace.
The tower will also be within walking distance to public transit and the business, retail and entertainment hubs of the Exchange Square and Spinningfields, Starlight said.
The second tower is a 40-storey property of 517 apartments, also offering a mix of one-, two- and three-bedroom units. Located in Manchester’s Greengate neighborhood, it will be within walking distance from the Northern Quarter and the Manchester Central Business District. Amenities will include a rooftop terrace, co-working areas, a gym and resident lounges.
Manchester is one of the fastest-growing U.K. cities in population and economy over the past decade, a situation which is expected to persist for the next 10 years, Starlight said.
In Basildon, viewed as a London commuter community, Starlight is acquiring a 492-suite, three-block building of one- and two-unit apartments that will be near the town’s main train station. Amenities are expected to include five outdoor terraces, a gym and co-working areas.
All the properties will emphasize green features such as energy-efficient lighting, solar panels and electric vehicle charging stations.
Starlight’s turn to Europe
Drimmer described the U.K. as a “nascent rental market with a fundamental housing imbalance between supply and demand” in Starlight’s 2023 announcement about its entry into the country’s build-to-rent sector.
“Entering the United Kingdom build-to-rent market is a natural extension of Starlight’s North American residential expertise that will further allow us to invest with impact and strengthen Starlight’s brand as a global residential investor and asset manager,” he said.
The company is targeting build-to-rent projects in London’s commuter belt and up to 10 other major cities in the U.K.
Key to its objective is supporting its U.K. asset management team to strengthen relationships with developers in the country. Renaker, for example, is a Manchester developer that has built over 8,000 housing units, the British company says, with a strong interest in build-to-rent.
“We are pleased to have completed these two transactions with a quality and professional global partner, who shares the same vision and values to deliver market-leading, build-to-rent communities. We look forward to building on this relationship in the future,” Daren Whitaker, founder and chairman of Renaker, said in the announcement.