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TORONTO, Nov. 25, 2013 /CNW/ - Tricon Capital Group Inc. (TSX: TCN)
("Tricon" or the "Company") today announced that it has closed a
separate investment account for US$80.8 million (the "Transaction")
with a large institutional investor to support the acquisition and
development of approximately 2,100 acres of prime land into a large
mixed-use master-planned community in the City of Conroe (Houston MSA),
Texas. Known locally as "Camp Strake", the property is located just
north of Exxon-Mobil's new headquarters and The Woodlands, an existing
28,400 acre master-planned community that has been one of the top
selling master-planned communities in the United States for the past
30+ years and is quickly running out of developable land.
The developer of the project will be the Johnson Development Corp.
("Johnson"), an award-winning land development company with over 35
years of experience designing and developing large master-planned
communities across the United States. Johnson is currently developing
nine other master-planned communities in the Houston market, including
Riverstone, Sienna Plantation, Wood Forest and Cross Creek Ranch; four
of the top 20 best-selling master-planned communities in the United
With immediate effect, Tricon will commit 10% of the required capital
for the transaction with the remainder committed by an institutional
investment partner and the developer. The Transaction has increased
the Company's assets under management ("AUM") to $1.7 billion,
representing a 53% increase since December 31, 2012.
Property is located in Montgomery County, the second fastest growing
county in the Houston Metropolitan Area; Montgomery County and the City
of Conroe have already approved a tax incentive agreement to support
development of the project.
This investment will represent Tricon's third investment in the Houston
MSA since April 2012 with the Johnson Development Corp.
Houston remains the number one housing market in the United States as
measured by new home permits; Houston has generated over 65% more new
home permits in 2013 than any other U.S. city.
Houston leads the nation in employment growth with approximately 100,000
new jobs created in the last 12 months (ending in July 2013), a 3.6%
growth rate (as compared to the national job growth rate of 1.6% over
the same period).
About Tricon Capital Group Inc.
Founded in 1988, Tricon is one of North America's leading residential
real estate investment companies with $1.7 billion of assets under
management and a portfolio of approximately 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.
About The Johnson Development Corp.
The Johnson Development Corp. was founded over 35 years ago and has
grown into one of the nation's leading land companies, focused on the
development and sale of highly amenitized master-planned residential
and mixed-use communities. Johnson currently operates in the Houston
and Atlanta markets with ten communities under active development,
including four of the top 20 selling master planned communities in the
United States. More information about Johnson is available at www.johnsondevelopment.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.
SOURCE: Tricon Capital Group Inc.
For further information:
Chief Financial Officer