Tricon is a landlord and developer of single-family rental homes with more than 38,000 rental properties in the United States and Canada.
Investment management firm Blackstone made another big bet on rental housing on Friday. announcement announced that it has agreed to take Canadian real estate company Tricon Residential private in a $3.5 billion transaction.
Tricon operates as both a landlord and developer of single-family rental homes in the United States and Canada, with a portfolio of approximately 38,000 single-family rental homes in the U.S. Sunbelt region and multifamily properties in the Toronto area. .
“Tricon provides access to high-quality homes and together we are committed to delivering an exceptional residential experience,” said Nadeem, Global Co-Head of Blackstone Real Estate. Meghji said. “We are excited that our capital will advance Tricon’s efforts to add much-needed housing supply across the United States and in Toronto, Canada.”
In the United States, Tricon owns single-family rental properties in Atlanta, Charlotte, Dallas, Tampa and Phoenix. The company’s single-family rental development platform currently has approximately 2,500 homes under development. The company also has land development projects that it plans to support approximately 21,000 single-family homes, as well as a multifamily development platform in Canada that is currently constructing 5,500 market-rate and affordable multifamily buildings. is operated.
Under the new ownership, the company has completed a $1 billion pipeline of new single-family home development plans and will improve the quality of its existing single-family home portfolio through an additional $1 billion investment over the next few years, according to They say they plan to improve it. announcement.
“Blackstone shares our values and unwavering commitment to resident satisfaction, and we look forward to benefiting from their expertise and capital as we partner in building thriving communities.” said Gary Berman, president and chief executive officer of Tricon.
Blackstone will maintain an 11% ownership interest in Tricon after the deal closes.
The agreement comes as the U.S. and Canada face a housing affordability crisis, with mortgage rates at generational highs and more people turning to renting instead of owning their homes. It was conducted.
This isn’t Blackstone’s first foray into the world of single-family rentals. This New York City-based asset management company is the largest single-family landlord in the United States with more than 300,000 rental properties in its portfolio.
The company was one of the first investment firms to buy large numbers of foreclosed homes in the wake of the subprime mortgage crisis, with lenders selling off a large number of foreclosed homes. The company founded Invitation Homes in 2012, but sold its shares in 2019.
The company then acquired real estate firm Home Partners of America for $6 billion in 2021, acquiring 17,000 homes.
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