Tricon Residential Inc.’s stock jumped 28% on Friday after Blackstone Inc. said it would buy the Canadian real-estate-investment company and take it private for $3.5 billion.
Tricon Residential Inc.’s NYSE-listed stock
TCN,
TCN,
rose $2.44 to close at $11.07 a share on Friday.
Blackstone
BX,
said its Blackstone Real Estate Partners X real-estate fund and Blackstone Real Estate Income Trust Inc. will buy all outstanding common shares of Tricon for $11.25 (equivalent to C$15.17) in cash.
The price amounts to a 30% premium over Tricon’s closing share price on Thursday.
BREIT will keep its roughly 11% ownership stake post-closing.
Tricon Homes said that its plans to invest about $4.5 billion in various construction projects will remain intact under Blackstone ownership.
As a specialist in rental homes and apartments in Toronto, Atlanta, Dallas, Tampa, Phoenix and Charlotte, N.C., Tricon is developing about 2,500 new houses in the U.S. and working on land-development projects for an additional 21,000 single-family homes. It’s also building 5,500 multifamily rental units in Canada.
Nadeem Meghji, global co-head of Blackstone Real Estate, said in a statement that the firm is “excited that our capital will propel Tricon’s efforts to add much-needed housing supply across the U.S. and in Toronto.”
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