Starlight secures £100m from National Housing Bank

The Canadian-headquartered investor will use the phased funding to advance its pipeline of 6,000 build-to-rent apartments in Manchester, Liverpool, Leeds, and London’s commuter belt.

The National Housing Bank, launched this year, is Homes England’s vehicle for deploying government-backed capital geared towards unlocking housing projects. The £100m committed to Starlight Investment’s UK Build-to-Rent Fund II will be issued in phases.

“This is exactly the kind of investment – made through the government’s National Housing Bank – that will help to transform England’s housing market,” said Simon Century, chief executive of the National Housing Bank.

“Supporting international capital to commit to building thousands of new homes in towns and cities across the country is a hugely encouraging sign that England’s residential market is open for business and able to attract institutional investment to support growth.”

Starlight is no stranger to the regional UK BTR scene, with 4,000 homes currently in its £1.1bn portfolio. The investor owns the 393-home Spectra in Salford being delivered by X1, the 532-flat Trinity Heights skyscraper in Manchester from Renaker, the 278-apartment Lighthaus in Liverpool from X1, and the 300-home Flax Place in Leeds from Torsion Group.

Starlight chief executive and founder Daniel Drimmer said: “Starlight’s UK residential strategy is rooted in responsible, long-term investment, and a commitment to providing high quality rental options for residents.

“Building on our expanding UK portfolio, this partnership marks an important milestone as we continue to grow our BTR platform and align private investment with outcomes that benefit local communities.”

The deal between Starlight and the National Housing Bank is reminiscent of NHB’s agreement with Aviva and Place Capital Group, which will also see £100m deployed to drive a pipeline of 3,300 rental homes. The first projects to benefit from NHB’s investment with Aviva are already in the works: 135 properties on Liverpool’s Vescock Street and 150 in Moston, Manchester.

There are no doubt more announcements to follow from NHB. The bank has up to £16bn at its disposal to distribute through a mix of debt, equity, and guarantee products. Homes England hopes that NHB will help attract more than £50bn from the private sector for housebuilding.