Blackstone to Acquire Tricon Residential for $3.5B

January 19, 2024

Finance & Investment Featured National News

Tricon has a $1 billion SFR development pipeline in the U.S.

Blackstone has agreed to acquire Tricon Residential in a $3.5 billion deal, the companies said on Friday morning. Blackstone Real Estate Partners X, alongside Blackstone Real Estate Income Trust, will take the target private through the acquisition of all its outstanding common shares for $11.25 per share.

In 2022, Tricon partnered with Arizona State Retirement System for the second time, adding an additional $500 million in equity to its investment to the single-family rental home market. The equity added to its previous $450 million investment into homes such as Tricon Willow Creek. Image courtesy of Tricon Residential Inc

Toronto-based Tricon’s portfolio includes a $1 billion development pipeline of single-family homes in the U.S. and a $2.5 billion development pipeline in Canada. Blackstone plans to invest another $1 billion in single-family home capital projects through the platform in the next few years.

In addition to its development pipeline, Tricon’s portfolio includes some 38,000 rental homes in the U.S. Its homes are primarily located in Sun Belt markets, including Atlanta, Charlotte, Dallas, Tampa and Phoenix. The company also owns rental properties in Toronto.

The transaction is expected to close in the second quarter. BREIT will maintain its ownership stake in Tricon following its $240 million exchangeable preferred equity investment in the company that took place in 2020.