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Blackstone’s take-private bid for one of the largest Canadian owners of residential and multifamily property, Toronto-based Tricon Residential Inc., (TCN-T) has received final regulatory approval and is scheduled to close on May 1.
The proposed acquisition by Blackstone Real Estate Partners X and Blackstone Real Estate Income Trust Inc. was made public in January. Blackstone’s friendly offer is for $11.25 per share (all figures US unless otherwise stated), valuing Tricon at approximately $3.5 billion.
Tricon announced this morning it has received Investment Canada Act approval, the final regulator required to weigh in on the deal.
The transaction previously received clearance under the Canada Competition Act and shareholder approval, as well as a final order from the Ontario Superior Court of Justice (Commercial List).
The transaction still remains subject to the waiver of “certain customary closing conditions”, Tricon noted in the update.
Blackstone's investment in Tricon
When the transaction closes, Tricon shares will be delisted from both the Toronto Stock Exchange and the NYSE and the company will become a wholly owned entity within the Blackstone group of companies.
The two companies have been business partners for the past four years, after Blackstone invested $240 million into Tricon in 2020.
Tricon had been co-founded by David Berman and Geoffrey Matus in 1988. Berman’s son Gary is now the company’s CEO, while David Berman remains involved as executive chairman.
Tricon became a publicly listed company in Canada in 2010, and listed on the NYSE in 2021.
Its portfolio includes 37,183 single-family rental homes in the U.S., 786 multifamily rental homes and a pipeline of about 4,800 multifamily rental apartments in lease-up, construction and pre-construction in Canada, according to an investor presentation earlier this year.
The portfolio is heavily focused on the U.S. Sun Belt, with 84 per cent of its assets in that region. The remaining 16 per cent of properties are in Canada, in the Greater Toronto Area market.
Blackstone Real Estate is a U.S.-based global investor through a diverse range of platforms and offerings. Its investor capital under management is $339 billion, and its global real estate portfolio value is $569 billion, according to the company website.
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