Blackstone and Tricon Residential have announced that Blackstone Real Estate Partners X and Blackstone Real Estate Income Trust (BREIT) will acquire all of the outstanding common shares of Tricon for $11.25 per common share in cash.
This transaction, valued at $3.5 billion, signifies a premium of 30% to Tricon’s closing share price on the NYSE on January 18, 2024, and a substantial 42% premium to the volume weighted average share price over the previous 90 days.
Tricon Residential Inc. is renowned for providing quality rental homes and apartments, leveraging a tech-enabled operating platform and dedicated on-the-ground teams. Serving communities in high-growth markets such as Atlanta, Charlotte, Dallas, Tampa, Phoenix, and Toronto, Tricon manages a single-family rental housing portfolio and has significant development projects underway.
Under Blackstone’s ownership, Tricon aims to complete a $1 billion development pipeline for single-family rental homes in the U.S. and $2.5 billion of new apartments in Canada, alongside existing joint venture partners. Additionally, the company plans to enhance the quality of existing single-family homes in the U.S. through a planned $1 billion in capital projects over the next several years. BREIT will maintain its approximately 11% ownership stake post-closing.
Gary Berman, President & CEO of Tricon, expressed confidence in the transaction, highlighting the immediate value it brings to shareholders while maintaining the commitment to delivering an exceptional rental experience for residents.
Blackstone’s Nadeem Meghji, Global Co-Head of Blackstone Real Estate, emphasized their dedication to providing high-quality housing and expressed excitement about contributing capital to Tricon’s efforts in addressing housing supply challenges across the U.S. and Toronto, Canada.
The decision to move forward with the transaction comes following the unanimous recommendation of a committee of independent members of Tricon’s board of directors.
Peter Sacks, Chair of the Special Committee and Independent Lead Director of Tricon, stated that after a thoughtful and comprehensive process, the Special Committee and Board concluded that the transaction with Blackstone is in the best interests of Tricon and its shareholders, offering compelling and certain value for Tricon’s shares.
