Homes England's National Housing Bank Makes Cornerstone Equity Investment in Starlight Investments' UK Build-to-Rent Fund II

TORONTO — Starlight Investments announced May 12 that the National Housing Bank, a company of Homes England, has made a cornerstone equity investment in the Starlight UK Build-to-Rent Fund II, a vehicle targeting the development and operation of 6,000 new rental homes across England.

The investment represents one of the first equity commitments made through the National Housing Bank, a newly established government vehicle designed to deploy flexible, government-backed capital across funds, platforms, and partnerships to accelerate housing and regeneration delivery at scale. The bank has a stated mandate to invest up to £16 billion over the next decade through debt, equity, and guarantee products, with a goal of attracting more than £50 billion in private capital.

Fund II Builds on Starlight Investments' Established UK Residential Strategy

Starlight Investments established its UK residential asset management platform in 2020, focused exclusively on the build-to-rent segment. The Toronto-based firm currently manages a UK portfolio of 4,000 homes with £1.1 billion in assets under management. Starlight's UK strategy targets structurally undersupplied rental markets, with a focus on major regional cities including Manchester, Liverpool, and Leeds, as well as key London Commuter Belt markets.

Fund II follows the firm's first UK BTR fund and continues what Starlight describes as a long-term strategy of developing and operating professionally managed rental housing in supply-constrained markets. In addition to the National Housing Bank's cornerstone commitment, the fund has received significant equity commitments from a diverse base of global institutional investors, according to the announcement.

Globally, Starlight Investments manages more than 70,000 multi-residential suites and over seven million square feet of commercial property, with CAD $30 billion in assets under management.

Government Capital Designed to Crowd In Private Investment

Homes England, the UK government's housing and regeneration agency, established the National Housing Bank as its vehicle for long-term place-shaping and housing investment. The bank's equity commitment to Starlight UK Build-to-Rent Fund II is structured to help unlock private institutional capital at scale — a model the bank describes as "crowding in" investment to accelerate housing delivery in areas of greatest need.

Daniel Drimmer, Founder and Chief Executive Officer of Starlight Investments, 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."

Simon Century, Chief Executive Officer of the National Housing Bank, said: "This is exactly the kind of investment — made through the government's National Housing Bank — that will help to transform England's housing market. 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's approach to development, professional management and institutional ownership of mid-market rental housing aligns with our place-based priorities. We welcome this partnership as part of our efforts to help communities access the homes they need."

Regional Markets and Undersupply Dynamics Drive Investment Strategy

Starlight's Fund II targets markets where rental housing undersupply is most pronounced. The firm's focus on Manchester, Liverpool, Leeds, and London Commuter Belt markets reflects a strategy to deploy capital in regional cities where build-to-rent penetration has historically lagged London, according to the announcement.

Starlight noted that its investment approach also supports broader economic activity through job creation, regeneration, and the delivery of rental communities located near employment centers, educational institutions, and transit infrastructure.

About the Firms

Starlight Investments is a privately held real estate investment and asset management firm headquartered in Toronto, Ontario, Canada. The firm owns, develops, and manages multi-residential and commercial properties globally.

Homes England is the UK government's housing and regeneration agency, working with partners to deliver affordable, quality homes and support community development across England.

The National Housing Bank, a Homes England company, delivers purpose-led finance for housing delivery, offering tailored and blended finance solutions alongside the full range of Homes England support.