Tricon Announces $1.5 Billion Homebuilder Direct Joint Venture to Include Pacific Life Insurance
Posted on 05/12/2021
Toronto, Ontario-based Tricon Residential Inc. is an owner and operator of a growing portfolio of over 31,000 single-family rental homes and multi-family rental apartments in the United States and Canada with a primary focus on the U.S. Sun Belt. Tricon Residential formed a new joint venture with Pacific Life Insurance Company and a global investor to acquire newly built single-family rental homes targeting the middle-market demographic in the U.S. Sun Belt. This new Joint Venture will serve as a natural complement to Tricon’s existing single-family rental joint venture (SFR JV-1) which is focused on the organic acquisition of resale homes. The Homebuilder Direct joint venture will have an initial equity commitment of $300 million (one-third from each partner) and include the ability for investors to increase the vehicle size to $450 million, representing $1.5 billion of purchasing potential when including associated leverage. This will enable the Joint Venture to acquire approximately 5,000 new single-family homes, primarily from national and regional homebuilders, including both scattered site homes and finished build-to-rent communities. Tricon will serve as the asset manager and property manager of the Joint Venture.
Pacific Life Insurance is owned by Pacific Mutual Holding Company.
