Tricon Residential has received court approval for U.S. investment giant Blackstone’s proposed US$3.5-billion acquisition of the Canadian company.

Toronto-based Tricon announced that the Ontario Superior Court of Justice (Commercial List) has granted a final order approving a plan of arrangement that will see Blackstone take the company private. The decision clears the last major hurdle for Blackstone’s purchase.

The deal calls for Blackstone Real Estate Partners X and Blackstone Real Estate Income Trust, Inc. (BREIT) to acquire all outstanding common shares of Toronto-based Tricon for US$11.25 (approximately C$15.17) per common share in cash. Upon the deal’s completion, BREIT will maintain its approximately 11% ownership stake in Tricon. 

Subject to closing conditions, the transaction is to be completed in the second quarter of 2024.

The court approval comes after shareholders representing 99.3% of Toronto-based Tricon’s common shares voted in favour of the deal, the company announced. The shareholder support came after independent proxy advisory firms Institutional Shareholder Services and Glass Lewis supported the purchase and recommended that shareholders do likewise. Tricon’s board also recommended that shareholders accept the deal.

Blackstone intends to take Tricon private with its stock being delisted from the New York and Toronto stock exchanges.

Founded in 1988, Tricon ranks among Toronto’s largest rental apartment owners. The company has US$2.5 billion of apartment buildings under development in the Ontario capital.

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.

Pictured: Tricon’s Canary Landing property in Toronto