The Ontario Superior Court of Justice Commercial List has advanced U.S. investment giant Blackstone’s proposed US$3.5-billion acquisition of Canada’s Tricon Residential.

Toronto-based Tricon announced that it has received the court’s permission, in the form of an interim order, to hold a special online shareholder meeting regarding the proposed sale. The interim order relates to a statutory plan of arrangement under provincial law.

The plan of arrangement calls for U.S.-based Blackstone, through Blackstone Real Estate Partners X, Blackstone REIT and their respective affiliates, to acquire involves Blackstone acquiring all outstanding common shares of Tricon for US$11.25 per share (C$15.18) in cash and taking the company private. The proposed price represents a significant premium to previous share prices, said Tricon.

During the special meeting, shareholders will vote on the plan of arrangement. The deal is contingent upon approval from at least two-thirds of shareholders who cast votes at the meeting or by proxy.

In addition to the court, the Competition Bureau of Canada and Investment Canada must approve the transaction in accordance with regulatory requirements.

Most of Tricon’s assets are located in the U.S. All of the firm’s Canadian assets are based in Toronto. The company’s Canadian multi-family development platform is building approximately 5,500 market-rate and affordable multi-family rental apartments.

The Canadian portfolio includes retail and office assets within mixed-use properties that include residential components.

In the U.S., Tricon serves communities in high-growth sunbelt markets such as Atlanta, Charlotte, Dallas, Tampa and Phoenix. In addition to managing a single-family rental housing portfolio, Tricon has a single-family rental development platform with approximately 2,500 houses under development, along with numerous land development projects that can support the future development of nearly 21,000 single-family homes.

Under Blackstone’s ownership, Tricon plans to complete its US$1-billion development pipeline of new single-family rental homes in the U.S. and US$2.5 billion of new apartments in Canada. Tricon will also continue to enhance the quality of existing single-family homes in the U.S. through an additional US$1 billion of planned capital projects.

Pictured: Tricon’s Canary Landing property in Toronto