Tricon to acquire U.S. multifamily portfolio for $1.4b

Tricon Capital Group and Starlight U.S. Multi-Family (No. 5) Core Fund have entered into an arrangement agreement whereby Tricon will acquire all of the issued and outstanding limited partnership units of the fund in an all-share transaction, resulting in the acquisition of the fund’s portfolio of 23 multifamily properties totaling 7,289 units located primarily in the U.S. Sun Belt (the fund portfolio).

The transaction is valued at approximately $1.4 billion, which reflects the appraised value of the fund portfolio. The transaction includes equity consideration of approximately $496 million that will be funded by issuing 50,779,314. Tricon common shares to the fund’s unitholders at an implied price of C$13.10 ($9.8) per Tricon share. Tricon will also indirectly assume approximately $916 million of the fund’s existing debt.

The fund portfolio consists of 23 high-quality properties with an average vintage of 2012; the assets are primarily garden-style apartment