Private equity giant Blackstone is set to acquire Tricon Residential in a deal valued at around $3.5 billion, the company announced last week. Blackstone entered an agreement to acquire all outstanding common shares of Tricon, with a price tag of $11.25 per common share.
The proposed transaction comes at a premium, marking a significant 30% increase over Tricon’s closing share price on the New York Stock Exchange as of Jan. 18, 2024, the final trading day before the formal revelation of the deal.
Tricon, which owned 37,478 homes at the end of the third quarter of 2023, was one of three big publicly traded institutional homebuyers. Most single-family rental giants are privately held or consolidated into a broader REIT. By the close of Q3 2023, American Homes 4 Rent, with 58,392 single-family homes, and Invitation Homes, with 76,138 single-family homes, were the only comparably sized contenders to Tricon Residential.
Tricon operates in high-growth markets such as Atlanta, Charlotte, Dallas, Tampa, and Phoenix as well as Toronto, Canada. Tricon is also actively involved in the U.S. single-family rental development scene, with around 2,500 houses in progress.
The company has various land development projects in the pipeline, capable of supporting the construction of nearly 21,000 single-family homes. In Canada, Tricon operates a multifamily development platform, currently working on approximately 5,500 market-rate and affordable multifamily rental apartments.