Tricon Residential has entered into an agreement to sell its 20 percent equity interest in its portfolio of 23 Sun Belt apartment buildings.
The interest is being acquired by a vertically integrated residential real estate investment and property management company, which will assume all asset and property management responsibilities after a customary transition period.
In aggregate, Tricon will receive approximately $315 million of gross proceeds from the sale, including performance fees earned for managing the third-party joint venture through which the Portfolio is held.
Tricon intends to use the net sale proceeds primarily to repay outstanding debt on its corporate credit facility, enhancing its balance sheet flexibility to pursue future growth in its core single-family rental business.
“The sale of our U.S. multifamily business marks a significant step in our quest to simplify our business and focus our balance sheet exposure primarily on single-fa