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.
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.
