Blackstone Real Estate to Take Tricon Residential Private in $3.5 Billion Deal

By Adriano Marchese

Blackstone Real Estate Partners agreed to acquire Canadian real estate company Tricon Residential in a deal with an equity transaction value of $3.5 billion.

In a joint statement, the companies said Blackstone Real Estate Partners, in conjunction with Blackstone Real Estate Income Trust, will acquire all outstanding common shares of Tricon for about 15.17 Canadian dollars, or $11.25, a share.

Tricon's stock has increased 4.9% over the last 12 months, and closed on Thursday at C$11.65 in Toronto. In New York, the stock closed at $8.63.

The transaction price represents a premium of 30% to Tricon's closing share price in New York on Thursday and a 42% premium to the volume-weighted average share price over the prior 90 days, Tricon said.

Tricon owns, operates and develops a portfolio of about 38,000 single-family rental homes in the U.S. Sun Belt as well as multi-family apartments in Canada. It also provides residential services through its tech-enabled operating platform and operating teams, serving communities in both countries.

Under the new 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.

It will also spend $1 billion of planned capital projects over the next several years.

Once the transaction is complete, Tricon's shares will no longer be listed on the New York Stock Exchange or the Toronto Stock Exchange, but will remain headquartered in Toronto, Ontario.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

January 19, 2024 09:32 ET (14:32 GMT)

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