Tricon Residential Inc.'s stock experienced a significant surge of 28% on Friday following the announcement of its acquisition by Blackstone Inc. in a deal worth $3.5 billion. With this acquisition, Blackstone intends to take the Canadian real-estate-investment company private.
Tricon Residential Inc.'s NYSE-listed stock (TCN, +27.98%) witnessed a substantial increase of $2.46, reaching $11.08 per share during Friday morning trading.
Blackstone has revealed that its real estate fund, Blackstone Real Estate Partners X, along with Blackstone Real Estate Income Trust Inc., will purchase all outstanding common shares of Tricon for $11.25 per share in cash, equivalent to C$15.17. This price reflects a 30% premium over Tricon's closing share price on Thursday.
Post-closing, Blackstone Real Estate Income Trust Inc. will retain its approximately 11% ownership stake.
Tricon has made it known that its plans to invest around $4.5 billion in various construction projects will remain unaffected under Blackstone's ownership. As a renowned expert in rental homes and apartments in Toronto, Atlanta, Dallas, Tampa, Phoenix, and Charlotte, N.C., Tricon is currently involved in the development of roughly 2,500 new houses in the United States. Additionally, they are actively working on land-development projects for an additional 21,000 single-family homes. In Canada, Tricon is spearheading the construction of 5,500 multifamily rental units.
Nadeem Meghji, the global co-head of Blackstone Real Estate, expressed his excitement in a statement, highlighting how the firm's capital will contribute to Tricon's efforts to address the pressing need for increased housing supply across both the United States and Toronto.