Globe & Mail 07:17 AM EDT, 07/19/2021 (MT Newswires) -- Tricon Residential Inc. (TCN.TO), an owner and operator of single-family rental homes and multi-family rental apartments in the US and Canada, has entered into a joint venture arrangement (SFR JV-2) with three institutional investors to acquire single-family rental homes targeting the middle-market demographic in the U.S. Sun Belt. The JV will succeed Tricon's existing single-family rental Joint Venture (SFR JV-1), which has acquired over 9,000 homes and is now fully invested. The investors include the Teacher Retirement System of Texas, Pacific Life Insurance Company and one of Tricon's existing global investors.
The JV will have an initial equity commitment of US$1.4 billion and can be increased to US$1.55 billion, including Tricon's co-investment of $450 million, representing approximately US$5 billion of purchasing power when including associated leverage. Over a three-year investment period, SFR JV-2 is expected to acquire more than 18,000 single-family rental homes primarily from resale channels. Tricon will serve as the asset manager and property manager of the Joint Venture.
"We are very excited to partner with three leading investors to launch SFR JV-2, which represents the largest joint venture in Tricon's history and is a significant milestone for institutional investment in the single-family rental asset class," said Gary Berman, President and CEO of Tricon Residential. "Tricon has now raised US$2 billion of third-party equity commitments year-to-date and has the capital in place to grow our single-family rental portfolio to nearly 50,000 homes over the next three years. We anticipate growing our portfolio by over 6,000 homes in the coming year, and are already well on track with more than 1,500 homes acquired in Q2."
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