BY Fraser Tennant
In a major residential real estate deal that takes the North American property company private, Tricon Residential Inc. is to be acquired by private equity giant Blackstone for $3.5bn.
Under the terms of the definitive agreement, Blackstone will acquire all outstanding common shares of Tricon for $11.25, approximately C$15.17, per common share in cash.
Subject to and upon completion of the transaction, Tricon’s common shares will no longer be listed on the NYSE or TSX. The company will remain headquartered in Toronto, Ontario.
The acquisition was unanimously recommended by a committee of independent members of Tricon’s board of directors. The committee determined that the transaction is in the best interests of Tricon and fair to Tricon shareholders, and recommended that Tricon shareholders vote in favour of the transaction.
“We are proud of the significant and immediate value that this transaction will deliver to our shareholders, while allowing us to continue providing an exceptional rental experience for our residents,” said Gary Berman, president and chief executive of Tricon. “Blackstone shares our values and our unwavering commitment to resident satisfaction, and we look forward to benefitting from their expertise and capital as we partner in building thriving communities.”
Providing rental homes and apartments, along with resident services through its technology-enabled operating platform and dedicated on-the-ground operating teams, Tricon serves communities in high-growth markets such as Atlanta, Charlotte, Dallas, Tampa and Phoenix, as well as Toronto, Canada.
In addition to managing a single-family rental housing portfolio, Tricon has a single-family rental development platform in the US with approximately 2500 houses under development, as well as numerous land development projects that can support the future development of nearly 21,000 single-family homes.
Under Blackstone’s ownership, Tricon plans to complete its $1bn development pipeline of new single-family rental homes in the US and $2.5bn of new apartments in Canada. The company will also continue to enhance the quality of existing single-family homes in the US through an additional $1bn of planned capital projects over the next several years.
Completion of the transaction – which is expected in the second quarter of 2024 – is subject to customary closing conditions, including court approval, the approval of Tricon shareholders, and regulatory approval under the Canadian Competition Act and Investment Canada Act.
“Tricon provides access to high-quality housing, and we are fully committed to delivering an exceptional resident experience together,” concluded Nadeem Meghji, global co-head of Blackstone Real Estate. “We are excited that our capital will propel Tricon’s efforts to add much needed housing supply across the US and in Toronto, Canada.”
News: Blackstone to take Tricon Residential private for $3.5 billion