/Not for distribution to U.S. Newswire services or for distribution in the United States./
TORONTO, April 3, 2012 /CNW/ - Tricon Capital Group Inc. (TSX: TCN) ("Tricon" or the "Company") today announced that it has made an $11.2 million equity commitment to support the acquisition and development of a 60 acre mixed-use development site located a half mile south of the Dallas Convention Center in Dallas, Texas. Upon completion, the approximately $400 million project is expected to feature a mix of residential, commercial and retail uses in a transit-oriented and pedestrian friendly urban environment (the "Project"). The Project will also provide future residents and visitors with direct access to the planned Trinity Lakes, a key component of the multibillion dollar Trinity River Corridor Project.
Tricon's equity commitment to the Project is not related to the equity financing announced on March 29, 2012, which financing is largely intended to raise capital for the Company's new U.S. single-family home rental strategy. A preliminary short form prospectus relating to the financing is expected to be filed with the securities regulatory authorities in each of the provinces and territories of Canada on or before April 4, 2012.
Tricon intends to warehouse its equity investment in the Project until the closing of its new U.S. distressed investment fund, Tricon XI (the "Fund"), at which point the investment would be offered to the Fund. Tricon continues to move forward with a large U.S. institutional investor and is aiming for a Q2 2012 initial closing for the Fund (see "Forward-Looking Statements" below).
"The development of the Project lands represents a tremendous opportunity for Tricon to participate in the redevelopment of downtown Dallas and its transformation into a vibrant live-work destination," said David Berman, Tricon's Chairman and Chief Executive Officer. "In addition, we are extremely excited about the re-entry of Tricon into the Dallas marketplace, a city where Tricon made its first U.S. investment in 1990."
The developer of the Project will be Matthews Southwest ("Matthews"), an award-winning full-service development company with extensive experience designing and building urban mixed-use and commercial projects across North America. Matthews is currently developing South Side on Lamar, a successful 45 acre urban redevelopment located immediately east of the Project and recently completed the development of the new Omni Dallas Convention Center Hotel on behalf of the City of Dallas.
"The redevelopment of south Downtown Dallas represents an unparalleled opportunity for the City of Dallas, future residents and retailers alike," said Jack Matthews, President of Matthews Southwest. "This acquisition allows us to expand on our original vision for the redevelopment of the area that we started at South Side and extend it all the way to the waterfront. We believe that our efforts here in partnership with Tricon will reposition the area to become one of the premier communities in downtown Dallas."
About Tricon Capital Group Inc.
Founded in 1988, Tricon is one of North America's leading residential real estate investment companies with approximately $1 billion of assets under management. 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 150 transactions for development projects valued at roughly $10 billion. More information about Tricon is available at www.triconcapital.com.
About Matthews Southwest Developments
Matthews Southwest is a full service private real estate development company headquartered in Dallas, Texas with additional offices in Calgary, Alberta and Mississauga, Ontario. Matthews was founded in 1988 by Jack Matthews and over its 24 year history has been responsible for the acquisition, construction and management of numerous hospitality, office, retail, entertainment, residential and industrial developments in the United States, Canada and Mexico. Today Matthews controls in excess of $400 million of real estate and manages in excess of $2 billion of construction projects. More information about Matthews is available at www.matthewssouthwest.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.
The offering of the Project to the Fund, as well as the formation and initial closing of the Fund, remain subject to various conditions, including the negotiation and execution of definitive legal documentation, and therefore there can be no assurance that the closing of the Fund will occur or that the investment in the Project will be acquired by the Fund.
For further information:
Chief Financial Officer
Email: [email protected]
Email: [email protected]