Starlight Investments has secured £680M for its second UK build-to-rent (BTR) fund. This marks one of the largest specialist capital raises in the sector to date.
Combined with debt, the capital will allow Starlight to construct roughly 6,000 new homes. Jonnie Milich, Head of UK Residential at Starlight, stated that this scale will place the company among the top four BTR operators in the UK. It is a significant move for a private firm with C$30B in assets under management.
The timing is notable given the recent downturn. Annual BTR starts fell 79% to just 3,455 homes in the 12 months ending June 2026, according to data from RE:UK and Savills. Rising construction costs and falling asset values have choked off development elsewhere in the market.
Money is already moving. A combined £500M in equity and debt from Fund II has been deployed on three specific developments. Two are located in Manchester, and the third is in Basildon, Essex.
The first Manchester scheme is a 60-storey tower with 532 units. It sits under construction in the Castlefield conservation area, on the bank of the River Irwell. The second Manchester project is a 40-storey residential tower featuring 517 units in the Greengate neighbourhood.
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Over in Essex, the Basildon project involves a 492-unit, three-block mid-rise property. It is positioned close to the main train station. These projects represent the immediate physical output of the fund’s initial phase.
Institutional support is anchoring the deal. The UK Government’s National Housing Bank is a cornerstone investor, contributing £100M in equity.
Raj Mehta, Starlight’s president of global markets, commented on the closing of the fund. “The successful close of Fund II reflects the strong institutional conviction behind Starlight’s UK residential strategy and the opportunity we continue to see in the market,” he said in a statement.
Starlight currently holds a UK portfolio of 4,000 BTR units with an end value of £1.1B. The firm manages 70,000 residential units globally, alongside 7M square feet of commercial space.