Rental housing company Tricon Capital Group Inc. agreed to form a joint venture with the Arizona State Retirement System with a total equity commitment of $450 million.
The partnership will target investments in master-planned communities and the development of single-family build-to-rent communities in the U.S. Sun Belt markets.
Tricon, which has already identified some potential investments, is contributing $50 million to the venture, while the pension fund will commit $400 million. Tricon intends to inject two wholly owned master-planned communities as potential seed assets into the venture.
Tricon will fund the co-investment primarily with internally generated cash flow and will also act as an asset manager.
