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TORONTO, March 24, 2015 /CNW/ - Tricon Capital Group Inc. ("Tricon" or the "Company") (TSX: TCN), an asset manager and principal investor focused on the residential real estate industry, today announced that its subsidiary, Tricon American Homes, LLC, has entered into an agreement to acquire a portfolio of approximately 1,400 U.S. single-family rental homes situated in North Carolina, South Carolina, and Texas. The Company will finance the acquisition with cash and available debt and will upsize its warehouse credit facility from US$400 million to US$450 million in connection with closing the acquisition.
This transaction is expected to be completed on or around March 31, 2015, subject to customary closing conditions, and subject to the seller's right to terminate the agreement in certain circumstances upon payment of a US$3.0 million break-up fee to the Company.
Further details of the transaction will be announced following its completion.
About Tricon Capital Group Inc.
Tricon is an asset manager and principal investor focused on the residential real estate industry in North America with approximately $2.5 billion of assets under management. Tricon owns, or manages on behalf of third party investors, a portfolio of investments in land and homebuilding assets, single-family rental homes, and manufactured housing communities. Our business objective is to earn fee income through our Private Funds and Advisory business and to invest for investment income and capital appreciation through our Principal Investment business. Since inception in 1988, Tricon has invested in real estate and development projects valued at approximately $16 billion. More information about Tricon is available at www.triconcapital.com.
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Certain statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include statements regarding the anticipated successful completion of the portfolio acquisition and associated financing. Such forward-looking statements are subject to significant known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Such risks include the risk that the conditions to completion of the acquisition are not satisfied and the risk that the seller cancels the purchase agreement. Although management believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons. The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect current expectations of the Company as at the date of this news release and speak only as at the date of this news release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law
SOURCE Tricon Capital Group Inc.
For further information: Gary Berman, President & Chief Operating Officer, Tel: 416-928-4122, Email: [email protected]; Wissam Francis, Executive Vice President - Corporate Finance, Tel: 416-323-2484, Email: [email protected]