NEW YORK CITY AND TORONTO — Affiliates of Blackstone (NYSE: BX) have entered into an agreement to acquire Canadian owner-operator Tricon Residential (NYSE: TCN) for $3.5 billion. The deal is expected to close in the second quarter and will take Tricon Residential private. Blackstone will acquire all outstanding shares of Tricon’s common stock for $11.25 per share in cash. The per-share price represents a 30 percent premium over Tricon’s closing stock price on Thursday, Jan. 18 and a 42 percent premium over the weighted average share prices of the last 90 days.
One of the acquiring entities, Blackstone Real Estate Income Trust, already has an 11 percent ownership stake in Tricon Residential, following a $240 million equity purchase in 2020. The company went public in 2010 and is also traded on the Toronto Stock Exchange.
Blackstone plans to maintain and leverage the Tricon platform as it undertakes $1 billion of single-family residential development in the U.S. and $2.5 billion of multifamily development in Canada.
Tricon’s U.S. platform encompasses roughly 2,500 single-family residences in various stages of development, as well as numerous land holdings that can support an additional 21,000 homes. Tricon’s apartment development pipeline in Canada comprises approximately 5,500 market-rate and affordable housing units. As of February 2021, the Toronto-based firm owned about 31,000 single-family and multifamily rental units across the United States and Canada.