Toronto-based Starlight Investments has closed its second build-to-rent (BTR) fund focused on the United Kingdom, with the vehicle set to support the acquisition and development of more than 6,000 rental homes across the country.
The fund, called Starlight UK BTR Fund II, has secured £680 million in capital commitments when combined with additional capital raised through related investment vehicles, according to a report from Inside Housing Living. The fund is partially deployed and currently includes three rental communities under construction — two in Manchester and one in Basildon.
Capital for the fund came from a mix of global institutional investors spanning Europe, the Asia-Pacific region and Canada, including both existing limited partners and new participants. Among the notable contributions was a £100 million commitment made in May by Homes England’s newly created National Housing Bank, marking one of the first investments made through that body.
Fund II builds on Starlight Investments’ first UK BTR fund and represents a continuation of the firm’s broader strategy of developing and operating rental housing in markets it considers structurally undersupplied.
Starlight Investments is a privately held investment and asset management firm with roughly C$30 billion (about £16 billion) in assets under management. Its UK arm is dedicated specifically to the build-to-rent sector, with an aim of delivering thousands of new rental homes in major regional cities as well as commuter towns around London that are experiencing housing shortages. The platform currently comprises 12 build-to-rent communities in various stages, from development through active leasing and operations.
Raj Mehta, president of global markets at Starlight Investments, said the successful close of Fund II reflects strong institutional confidence in the firm’s UK residential strategy and the opportunities it continues to see in the market. He added that with the capital now committed, the firm is positioned to keep delivering homes in what it describes as chronically undersupplied markets across the UK.
Jonnie Milich, head of UK residential at Starlight Investments, said the firm’s focus is now shifting toward execution and the next phase of growth for its UK residential platform. He pointed to a substantial development pipeline, an established local team, and a growing number of communities moving through construction, lease-up and operations. Milich also said that as the firm advances its pipeline and brings new communities online, its portfolio is expected to place it among the UK’s four largest build-to-rent operators by scale.
Starlight Investments entered the UK build-to-rent market in 2023. Last year, the firm acquired 55 build-to-rent homes in Maidenhead, Berkshire, from house builder Countryside Properties, a subsidiary of Vistry Group, in a deal that was under construction at the time of purchase. That transaction represented the company’s tenth build-to-rent acquisition in the UK and brought its total UK portfolio to 4,000 homes.
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