Blackstone to take Tricon Residential private for $3.5 billion
Signage is seen outside the Blackstone Group headquarters in New York City, U.S., January 18, 2023. REUTERS/Jeenah Moon/File Photo Purchase Licensing Rights
Jan 19 (Reuters) - Investment management company Blackstone (BX.N) has agreed to take Canadian real estate firm Tricon Residential (TCN.TO) private for $3.5 billion, the companies said on Friday.
U.S.-listed shares of Tricon jumped about 28% at market open, hitting nearly a one-and-a-half-year high.
Under the deal, Blackstone will acquire all outstanding shares of Tricon for $11.25 per share in cash, representing a 30.35% premium to the stock's last close.
Tricon primarily provides single-family rental housing and rental development in the United States and Canada.
After the acquisition, Tricon plans to complete its $1 billion development pipeline of new single-family rental homes in the U.S. and $2.5 billion of new apartments in Canada.
The transaction, expected to close in the second quarter of this year, comes at a time when Canada is facing an affordable housing crisis.
In a bid to boost supply, the Canadian government said last year it would remove the federal 5% consumption tax on the construction of new rental apartment buildings.
Morgan Stanley and RBC Capital Markets are the financial advisers to Tricon.
Sign up here.
Reporting by Aishwarya Jain in Bengaluru; Editing by Krishna Chandra Eluri and Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles.
