Tricon's stock jumps by 28% on $3.5 billion buyout deal by Blackstone

By Steve Gelsi

Toronto-based real-estate-investment company eyes $4.5 billion development pipeline

Tricon Residential Inc.'s stock jumped 28% on Friday after Blackstone Inc. said it would buy the Canadian real-estate-investment company and take it private for $3.5 billion.

Tricon Residential Inc.'s NYSE-listed stock (TCN) (CA:TCN) rose $2.44 to close at $11.07 a share on Friday.

Blackstone (BX) said its Blackstone Real Estate Partners X real-estate fund and Blackstone Real Estate Income Trust Inc. will buy all outstanding common shares of Tricon for $11.25 (equivalent to C$15.17) in cash.

The price amounts to a 30% premium over Tricon's closing share price on Thursday.

BREIT will keep its roughly 11% ownership stake post-closing.

Tricon Homes said that its plans to invest about $4.5 billion in various construction projects will remain intact under Blackstone ownership.

As a specialist in rental homes and apartments in Toronto, Atlanta, Dallas, Tampa, Phoenix and Charlotte, N.C., Tricon is developing about 2,500 new houses in the U.S. and working on land-development projects for an additional 21,000 single-family homes. It's also building 5,500 multifamily rental units in Canada.

Nadeem Meghji, global co-head of Blackstone Real Estate, said in a statement that the firm is "excited that our capital will propel Tricon's efforts to add much-needed housing supply across the U.S. and in Toronto."

-Steve Gelsi

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01-19-24 1629ET

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