Tricon Capital Group sells Tricon Lifestyle Communities portfolio

Tricon Capital Group Inc. (TSX: TCN) has entered into an agreement to sell the portfolio of 14 manufactured housing communities comprising its Tricon Lifestyle Communities (TLC) investment vertical to an unnamed institutional investor.

The sale is expected to be completed in Q3 of 2018; additional details of the transaction will be disclosed upon closing.

“The sale of our TLC manufactured housing communities portfolio represents the next meaningful step along our stated plan to simplify Tricon’s business,” said Gary Berman, President and CEO of Tricon Capital.

Tricon Lifestyle Communities, through a joint venture with Cobblestone, invests in manufactured housing communities (MHCs) in the U.S. situated in Arizona and California. Under the terms of the joint venture, TLC will invest 99% of the equity capital for each MHC and earn related income primarily from leasing “pads” or lots to owners of prefabricated homes and, to a much lesser extent, renting park-owned homes to tenants.

In February 2017, Tricon announced its intentions to orderly exit from the TLC vertical after completing its existing value-add business plan.

photo credit: Tricon Capital Group

News Release

Not for distribution to U.S. Newswire services or for distribution in the United States. All figures in US dollars unless indicated.

Tricon Capital Group Enters into Agreement to Sell its Tricon Lifestyle Communities Portfolio

Toronto, Ontario – April 9, 2018 – Tricon Capital Group Inc. (“Tricon” or the “Company”) (TSX: TCN), a principal investor and asset manager focused on the residential real estate industry, announced today that it has entered into an agreement to sell the portfolio of 14 manufactured housing communities comprising its Tricon Lifestyle Communities (“TLC”) investment vertical to an institutional investor. The sale is expected to be completed in the third quarter of 2018, subject to customary closing conditions including lender consents. Additional details of the transaction will be disclosed upon closing.

“The sale of our TLC manufactured housing communities portfolio represents the next meaningful step along our stated plan to simplify Tricon’s business,” said Gary Berman, President and CEO of Tricon Capital. “We are very pleased with the outcome of the sales process, which upon closing is expected to result in a gain on our balance sheet carrying value. We intend to use the net proceeds largely to pay down our corporate credit facility, reducing our overall debt level and creating additional flexibility for future investments. Going forward, we will focus our growth efforts on our core investment verticals, where we have a clear path to scale, leadership and attractive long-term returns.”

About Tricon Capital Group Inc.

Tricon is a principal investor and asset manager focused on the residential real estate industry in North America with approximately $4.6 billion (C$5.8 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, manufactured housing communities and multi-family development projects. Our business objective is to invest for investment income and capital appreciation through our Principal Investment business and to earn fee income through our Private Funds and Advisory business. Since its inception in 1988, Tricon has invested in real estate and development projects valued at approximately $19 billion. More information about Tricon is available at www.triconcapital.com.

For further information, please contact:
Wissam Francis
EVP & Chief Financial Officer Tel: 416-323-2484
Email: wfrancis@triconcapital.com

Wojtek Nowak
Director, Corporate Finance & Investor Relations Tel: 416-925-2409
Email: wnowak@triconcapital.com
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