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Blackstone Taking Tricon Residential Private

Blackstone and Toronto-based Tricon Residential Inc. said Friday they had entered an agreement under which Blackstone Real Estate Partners X and Blackstone Real Estate Income Trust, Inc. (BREIT) will acquire all outstanding common shares of Tricon for $11.25 (approximately C$15.17) per common share in cash. The deal is valued at US$3.5 billion.

BREIT will maintain its approximately 11% ownership stake in Tricon post-closing. Tricon serves communities in high-growth markets such as Atlanta, Charlotte, Dallas, Tampa and Phoenix as well as Toronto.

In addition to managing a single-family rental housing portfolio, Tricon has a single-family rental development platform in the U.S. with approximately 2,500 houses under development, along with numerous land development projects that can support the future development of nearly 21,000 single-family homes. The company also has a Canadian multifamily development platform that is building approximately 5,500 market-rate and affordable multifamily rental apartments.

Under Blackstone’s ownership, Tricon plans to complete its $1-billion development pipeline of new single-family rental homes in the U.S. and $2.5 billion of new apartments in Canada. The company will also continue enhancing the quality of existing single-family homes in the U.S. through an additional $1 billion of planned capital projects.

“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 & CEO 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.”

Morgan Stanley and RBC Capital Markets are acting as financial advisors to Tricon. Scotiabank is acting as independent financial advisor and independent valuator to the Tricon board’s special committee.

Goodmans LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are acting as legal counsel to Tricon in connection with the transaction and Osler, Hoskin & Harcourt LLP is acting as independent legal counsel to the special committee.

BofA Securities, Deutsche Bank Securities Inc., J.P. Morgan Securities and Wells Fargo are acting as Blackstone’s financial advisors. Simpson Thacher & Bartlett LLP and Davies Ward Phillips & Vineberg LLP are providing legal counsel.

Pictured: Tricon Willow Creek in Tucson.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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