Press release from CNW Group
Tricon Capital Group Announces Tricon X Limited Partnership Investment in the Redevelopment of Calgary's East Village
Thursday, February 24, 2011
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Tricon X Limited Partnership Fully Committed and First Close of Tricon XII Limited Partnership Expected by Mid-Year 2011
TORONTO, Feb. 24 /CNW/ - Tricon Capital Group Inc. (TSX: TCN) ("Tricon") today announced that the Tricon X Limited Partnership ("Tricon X") has successfully closed a $17.5 million loan to partially finance the acquisition of 3.65 acres of land and the subsequent development of approximately 600,000 square feet of residential condominium and retail space in a mixed-use, urban development in Calgary's East Village redevelopment area (http://www.evexperience.com/). The approximately $300 million project will be built on four development parcels to be acquired from the Calgary Municipal Land Corporation ("CMLC") and is situated along the Bow River between downtown Calgary and Fort Calgary.
The developer of this project will be FRAM Building Group, an award-winning company with extensive experience designing and building urban mixed-use, multi-residential projects across North America and Europe, in partnership with the Slokker Real Estate Group, an established Dutch-based real estate development and investment company.
"The East Village represents an extraordinary commitment by the City of Calgary to redevelop a core underutilized section of the City into what will be a model urban master plan," said David Berman, Tricon's Chairman and Chief Executive Officer. "We are extremely excited to work with FRAM and Slokker and the CMLC to bring the City's vision to life."
"We see the renaissance of East Village as an unparalleled opportunity for the City, its business core and future residents," said Frank Giannone, President of FRAM Building Group. "This is a chance to create a mixed-use development that will embrace environmental, social and economic values. We are eager to help redefine the look of Calgary's downtown."
As a result of this investment, Tricon X is now fully committed. Tricon is actively raising capital for a new Canadian-dedicated investment fund, Tricon XII Limited Partnership ("Tricon XII"), which has a target capitalization of $150 million and is targeting a gross IRR of 18 per cent per annum.
"The investments in Tricon X are all performing well and the fund is on pace to generate a gross IRR of 20 per cent per annum," said David Berman. "We have also made significant progress in the fundraising of Tricon XII this quarter and expect to have a first close of the fund by mid-year."
About Tricon Capital Group Inc.
Founded in 1988, Tricon is one of North America's pre-eminent asset managers focused on the residential real estate development industry with approximately $1 billion of assets under management. Tricon participates in the development of residential properties in Canada and the United States by acting as the manager of limited partnerships that provide financing, typically in the form of participating loans, to developers, with a specific focus on residential land development, single-family homebuilding, multi-family construction and retail developed in conjunction with residential projects. Since inception, Tricon has invested in 141 transactions for development projects valued at approximately $9 billion. More information about Tricon is available at www.triconcapital.com.
About FRAM Building Group
FRAM Building Group is a Toronto-based award-winning company renowned for its creativity in planning, designing and building premier residential and mixed-use communities. Founded in 1981 by John Giannone, and with roots in this industry now dating back five generations, FRAM has successfully built over 11,000 residences from custom homes to exceptional single family, multi-family, condominium and rental communities across North America and southern Italy. More recently, FRAM has been at the forefront of developing unique, sustainable, pedestrian, mixed-use communities, such as the award-winning Port Credit redevelopment in Mississauga, Ontario.
About Slokker Real Estate Group
The Slokker Real Estate Group is a family business, started in the Netherlands in 1934. Today Slokker is proudly celebrating 75 years as a fully integrated real estate company, in Holland. Slokker International has been active in the North America markets for over 25 years with offices in Toronto and Calgary and twelve strategic locations throughout the United States, representing over 40 active projects.
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|June Alikhan |
Chief Financial Officer