Blackstone buys Toronto rental development company

Blackstone Real Estate says it will purchase all outstanding shares in Tricon Residential Inc. and take the Toronto-based rental development company private.

New York-based Blackstone, the world’s largest alternative asset manager, says it will pay about US$11.25 per common share for Tricon, which equates to a US$3.5 billion equity transaction.

Tricon has agreed not to declare its quarterly dividend while the transaction is pending, and says its dividend reinvestment plan will be suspended.

Blackstone Real Estate Income Trust Inc. will maintain its ownership stake of about 11% once the deal closes.

The companies expect the deal to close in the second quarter of this year, but warn the deal is subject to customary closing conditions and needs regulatory approval.

Tricon is an owner, operator and developer of about 38,000 single-family rental homes in the U.S. and multi-family apartments in Toronto.

In September, Blackstone opened a Toronto office, having hired Canada Pension Plan veteran Janice Lin as head of its real estate business for Canada.

The Canadian Press

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