Single-Family Rental Credit Facility Increased to $250 million; Portfolio Surpassed 3,000 Homes in November
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TORONTO, Dec. 13, 2013 /CNW/ - Tricon Capital Group (TSX: TCN) ("Tricon" or the "Company") today announced it has increased the size of the credit facility for its U.S. single-family rental platform, Tricon American Homes ("TAH"), by $100 million to $250 million. In addition, TAH was able to improve upon several of the key terms of the loan, including increasing the advance rate to 65% from 60% Loan-to-Cost retroactive to all existing borrowings. Deutsche Bank, the largest lender in the facility, recently led the first single-family rental securitization, a transaction that was extremely well received by the markets and several times oversubscribed.
Tricon American Homes was launched in April 2012. Since that time, over 3,000 homes have been acquired, putting the company well on track to achieving its publicly stated goal of owning over 4,000 homes by year-end 2014. Over the past three months, TAH has expanded its footprint into Las Vegas, San Antonio and Tampa and entered Atlanta in December 2013. In total, TAH is currently operating in 12 markets.
"I am very pleased with the growth of Tricon American Homes and its combined focus of generating cash flow from operations and capitalizing on long-term home price appreciation as the U.S. housing market recovers. There continues to be a buying opportunity in many parts of the United States which we will be able to take advantage of by using our upsized credit facility," said David Berman, Tricon's Chairman and Chief Executive Officer.
About Tricon Capital Group Inc.
Founded in 1988, Tricon is one of North America's leading residential real estate investment companies with $1.8 billion of assets under management and a portfolio of over 3,000 U.S. single-family rental homes. Tricon provides financing to local operators or developers in select markets in the United States and Canada, with a primary focus on for-sale housing in growing markets. Since inception, Tricon has invested in approximately 160 transactions for development projects valued at more than $11 billion. More information about Tricon is available at www.triconcapital.com.
This press release may contain forward-looking statements relating to expected future events and financial and operating results and projections of the Company, including statements regarding future plans, objectives or economic performance that involve risks and uncertainties. Forward-looking information and statements are based on management's expectations, intentions and assumptions. If unknown risks arise, or if any of the assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from management expectations as projected in such forward-looking statements. Examples of such risks include, but are not limited to, the risks disclosed in the Company's final long form prospectus dated May 14, 2010, the risks disclosed in the Company's subsequent final short form prospectuses issued through July 26, 2013 and the risks described in the Company's continuous disclosure materials from time-to-time, as available on SEDAR at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
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