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TORONTO, March 20, 2014 /CNW/ - Tricon Capital Group Inc. (TSX: TCN)
("Tricon" or the "Company") announced today that it has successfully
completed the syndication to a single large institutional investor of
90% of its previously disclosed US$49.5 million commitment to the
Vistancia West project (the "Project"), located in Phoenix, Arizona. In
September 2013, the Company closed on the $67.5 million commitment, a
joint venture with Shea Homes active adult division ("Shea" or the
"Developer"); of the $67.5 million, US$18.0 million will be contributed
by Tricon's current U.S. focused fund Tricon XI, with the remaining
US$49.5 million commitment to be funded 90% by the institutional
investor and 10% by the Company.
"Tricon's successful syndication of Vistancia West, the fourth separate
account established over the past two years, is testament to the
confidence that institutional investors have placed in our time-tested
U.S. residential investment strategy," said David Berman, Tricon's
Chairman and Chief Executive Officer. "The closing of this transaction
further demonstrates our ability to warehouse large institutional
quality investments in residential development projects, from which we
can subsequently create separate account or side-car investment
vehicles with large institutional investors to grow our AUM."
Shea, through their Trilogy division, is considered to be amongst the
premier North American developers of age-targeted resort style
communities, also referred to as active-adult communities1.
Vistancia West is adjacent to the nearly completed "Trilogy at
Vistancia" active-adult community in the Phoenix metropolitan area,
which sold over 400 homes per annum at its peak.
The Project seeks to take advantage of the strong demographics of the
baby-boom generation in an established and desirable retiree market.
The Phoenix market, where Tricon has almost 25 years of investment
experience, continues to recover from the recession and was ranked as
one of the top 10 metropolitan areas for job growth in the United
States for 20132. The National Association of Realtors reported home price appreciation
of 24.4% in the Phoenix metropolitan area in 2013, compared to the
national average of 8.9%.
About Tricon Capital Group Inc.
Founded in 1988, Tricon is one of North America's leading residential
real estate investment companies with approximately $1.9 billion of
assets under management and a portfolio of over 3,300 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.
About Shea Homes
Shea Homes is one of the largest private homebuilders in the nation.
Since its founding in 1968, Shea has built more than 90,000 homes in
California, Arizona, Nevada, Colorado, Washington, North Carolina and
Florida, and has recently announced plans to expand into Texas. For
more information about Shea Homes and its communities, please visit the
company's websites at www.SheaHomes.com and www.TrilogyLife.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 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.
1 Ranked in 2013 as the #1 Most Trusted Active Adult Builder by Lifestory
Research Most Trusted Builders in America Study.
2 Bureau of Labor Statistics - based on total employment growth Dec. 2012
- Dec 2013.
SOURCE: Tricon Capital Group Inc.
For further information:
Chief Financial Officer