Tricon Residential Recapitalizes a $1.3B US Portfolio

Canadian investor Tricon Residential has completed the recapitalization of a US portfolio. The firm entered into a joint venture with two institutional investors, which have purchased a combined 80% stake in the firm’s 23-property residential portfolio. Tricon will retain a 20% interest in the portfolio, which has a total value of $1.3 billion.

Tricon will use $425 million from the recapitalization to pay off outstanding debt and for general corporate purposes. This will reduce its debt exposure by 500 basis points to approximately 50% net debt/assets. The move “significantly enhances its balance sheet flexibility,” according to the firm. Tricon closed the transaction at the end of last year, and the deal was reflected on its balance sheet as of December 31, 2020.