Tricon Residential has teamed up with Teacher Retirement System of Texas, Pacific Life Insurance Company and one of Tricon鈥檚 existing global investors to invest $5bn (鈧�4.23bn) in US single-family rental homes.
The residential property investor has created the SFR JV-2 joint venture with the trio to acquire single-family rental homes targeting the middle-market demographic in Sun Belt states in the US.
The newly created joint venture will have an initial equity commitment of $1.40bn and include the ability for investors to increase the vehicle size to $1.55bn, including Tricon鈥檚 co-investment of $450m, representing approximately $5bn of purchasing power when including associated leverage.
Tricon said it will serve as the asset manager and property manager of the joint venture.
Over a three-year investment period, SFR JV-2 is expected to acquire more than 18,000 single-family rental homes, Tricon said.
Tricon said the new venture will serve as the successor to SFR JV-1, Tricon鈥檚 existing single-family rental joint venture, which has acquired over 9,000 homes and is now fully invested.
Gary Berman, president and CEO of Tricon Residential, said Tricon has now raised $2bn of third-party equity commitments year-to-date and has the capital in 鈥減lace to grow our single-family rental portfolio to nearly 50,000 homes over the next three years鈥�.
鈥淲e 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 the second quarter.鈥�
Eric Lang, senior managing director of private markets at Teacher Retirement System of Texas, said: 鈥淲e are excited to expand our partnership with Tricon after a very successful investment program in our first joint venture.鈥�
Grant Walker, senior director of real estate at Teacher Retirement System of Texas, said: 鈥淲e also value Tricon鈥檚 approach to operations and customer service, which we expect will drive investment returns for the teachers of Texas.鈥�
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