Tricon Capital Group has agreed to partner with Arizona State Retirement System (ASRS) in investments in master-planned communities and the development of single-family build-to-rent communities in the U.S. Sun Belt.
The US$450-million joint venture will be capitalized by a US$400 million commitment from ASRS and a US$50 million commitment from Tricon.
Tricon, which will source and manage investment opportunities, said it intends to offer two master-planned communities to seed the partnership.
Tricon, a Canadian real estate private equity firm, in June closed a US$1.4 billion acquisition of a portfolio of U.S. multi-family properties.
Tricon Announces $450 million Joint Venture with Arizona State Retirement System
TORONTO, Sept. 17, 2019 /CNW/ – Tricon Capital Group Inc. (TSX: TCN) (“Tricon” or the “Company”) announced today that it has entered into an agreement with the Arizona State Retirement System (“ASRS”) to form a joint venture partnership which will target investments in master planned communities and the development of single-family “build-to-rent” communities in U.S. Sun Belt markets. The total equity committed to this venture is $450 million, including $400 million from ASRS and $50 million from Tricon. Tricon currently has an attractive pipeline of potential investments including two wholly-owned master planned communities, which it intends to offer as potential seed assets to this venture.
“We are thrilled to partner with ASRS in this joint venture, which represents a major commitment of capital towards our growth strategy,” said Gary Berman, Chief Executive Officer and President of Tricon. “Through our partnership with ASRS, we aim to grow the master planned communities business of our Johnson Companies subsidiary and to fund the development of single-family “build-to-rent” communities, a burgeoning asset class which leverages Tricon’s expertise across residential real estate product types. The joint venture provides increased scale and operational synergies for our diversified housing platform that we expect to benefit our residents and shareholders alike.”
Tricon will fund its co-investment largely with internally generated cash flow. In its role as an asset manager, Tricon will be entitled to receive customary asset management fees, and potentially performance fees for managing third-party capital.
About Tricon Capital Group Inc.
Tricon is a residential real estate company primarily focused on rental housing in North America, with approximately $7.2 billion (C$9.7 billion) of assets under management. Tricon invests in a portfolio of single-family rental homes, multi-family rental apartments and for-sale housing assets, and manages third-party capital in connection with its investments. Since its inception in 1988, Tricon has invested in real estate and development projects valued at approximately $21 billion. More information about Tricon is available at www.triconcapital.com.
About Arizona State Retirement System
For more than 50 years, the Arizona State Retirement System has provided retirement security to Arizona’s public servants, including teachers, municipal workers and other government employees. The ASRS proudly serves more than a half-million members, including more than 100,000 retired members.
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