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TORONTO, July 24, 2014 /CNW/ - Tricon Capital Group Inc. (TSX: TCN)
("Tricon" or the "Company") today announced that it has closed a
US$59.0 million investment (the "Transaction") to support the
acquisition, development and sale of almost 1,200 homes on a 606 acre
site in northwest Charlotte, North Carolina (the "Project" or the
"Property"). One of Tricon's institutional partners has committed
US$39.0 million as a side-car with an additional US$15.7 million and
US$4.3 million committed by U.S. fund Tricon XI (the "Fund") and
Tricon, respectively. The developer of the Project will be Shea Homes
("Shea" or the "Developer"), one of the largest private homebuilders in
the United States.
"We are excited to expand our relationship with Shea, one of the premier1 homebuilders in the U.S. and a leader in the development of highly
amenitized communities targeted at the baby boomer market," said David
Berman, Tricon's Chairman and Chief Executive Officer. "We believe that
the Trilogy Lake Norman investment offers a unique opportunity to take
advantage of the strong growth fundamentals in both the Charlotte and
the Active Adult market segments."
The Property is located in Northwest Charlotte, near Lake Norman, which
is over 32,000 acres2 in size and is a popular amenity utilized for a number of recreational
activities including boating and fishing.
The Active Adult demographic is expected to be one of the fastest
growing population segments in the U.S. over the next decade3 and the Carolinas were ranked as the two most desirable retirement
destinations in the Del Webb 2010 Baby Boomer Survey given, in part,
the strong relative affordability and temperate climate.
The Property is located less than one mile from the recently expanded
Hwy-16, which provides convenient access to Charlotte Douglas
International Airport (approximately 20-25 minutes) and downtown
Charlotte (approximately 30 minutes).
There are currently a limited number of competitive age restricted
communities within the market place4, with only one other actively selling large-scale Active Adult
community in Charlotte.
Charlotte experienced 2.1% and 2.7% year-over-year population and
employment growth in 2013, significantly above the national growth
rates of 0.7% and 1.7%5, respectively. Furthermore, median household income in Charlotte grew
at 3.6% in 2013, over 1.4 times the national growth rate6.
The commitment increases Tricon's AUM by $43.3 million or 2.1%, to a
total of approximately $2.1 billion.
About Tricon Capital Group Inc.
Founded in 1988, Tricon is one of North America's leading residential
real estate investment companies. Tricon provides financing to local
operators or developers in select markets in the United States and
Canada, with a primary focus on housing in growing markets. Our
business objective is to invest for investment income and capital
appreciation through our Principal Investment business segments and to
earn fee income through our Private Funds and Advisory business. We
currently have $2.1 billion of assets under management, including
22,200 single-family lots, 6,100 multi-family units and a portfolio of
over 4,000 U.S. single-family rental homes. Since inception, Tricon has
invested in approximately 160 transactions for development projects
valued at more than $12 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 United
States. Since its founding in 1968, Shea has built more than 90,000
homes in California, Arizona, Nevada, Colorado, Washington and Florida,
and has recently announced plans to expand into Texas and Virginia. 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. 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
1 Ranked in 2013 as the #1 Most Trusted Active Adult Builder by Lifestory
Research Most Trusted Builders in America Study.
3 Harvard Joint Center for Housing Studies
4 Lifestory Trilogy Carolina Reserve Pricing Study - June 2014
5 U.S. Census Bureau and Bureau of Labor Statistics
6 Bureau of Labor Statistics
SOURCE: Tricon Capital Group Inc.
For further information:
Chief Financial Officer