Tricon Capital Group Announces Strategic Investment in Leading Houston-based Land Development Manager

Tricon Capital Group Announces Strategic Investment in Leading Houston-based 
Land Development Manager 
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE 
UNITED STATES./ 
TORONTO, April 15, 2014 /CNW/ - Tricon Capital Group Inc. (TSX: TCN) 
("Tricon") today announced that it has closed on a US$18.5 million strategic 
investment (the "Transaction") in The Johnson Companies LP, the development 
management division of The Johnson Development Corp. ("Johnson" or the 
"Company"). Johnson is one of the most active development managers of master 
planned communities in the United States and the only development manager in 
the country to have four communities ranked in the top 20 in 2013 (see chart 
below). With fourteen master planned communities under active development, 
this Transaction will be immediately accretive to Tricon, delivering income 
growth as a result of in-place contractual management fees, thereby bolstering 
its Private Funds & Advisory business. 
"I believe that under the leadership of Larry Johnson, The Johnson Development 
Corp. is one of the top land development managers in the United States. We 
have been extremely impressed with the experience and talent of their senior 
management team since we first partnered with them in early 2012 and we are 
excited about the opportunity to grow the Johnson brand over the coming 
years," said David Berman, Tricon's Chief Executive Officer. Mr. Berman 
continued, "In addition, while the in-place development management contracts 
will provide Tricon with a stable, recurring cash flow stream, we believe that 
the proprietary investment pipeline from this Transaction will generate 
significantly more upside for both Tricon shareholders and our institutional 
investors as we continue to grow our platform of fee generating assets." 
http://files.newswire.ca/1321/Tricon_0415_Chart.pdf 
Investment Highlights: 


        --  Johnson will provide a proprietary investment pipeline that
            will allow Tricon to continue to grow its Land & Homebuilding
            and Private Funds & Advisory business lines; to date, Tricon
            has already committed US$27.5 million of its own capital and
            raised US$247.3 million in third party institutional capital
            commitments to support Johnson-managed investments since early
            2012.
        --  A strategic relationship with one of the most active
            development managers for master planned communities in the
            United States provides institutional investors with "one stop
            shopping" in some of the highest growth U.S. housing markets,
            improving Tricon's competitive advantage in sourcing third
            party capital.
        --  Johnson earns fee and commission income from in-place
            development management contracts at fourteen active communities
            it manages; management fees and sales commissions are earned as
            lots and land are sold, but are not contingent on underlying
            project-level returns as Tricon is not acquiring an interest in
            Johnson's project-level equity positions.
        --  Johnson-managed communities achieved 2,720 new home sales in
            2013, year over year growth of 32%, and resulted in it being
            recognized as the Developer of the Year and Humanitarian of the
            Year from the Greater Houston Builder's Association.
        --  Over the long term, recurring contractual fee income will be
            generated by the development and sale of over 20,000
            residential lots and 1,250 acres of commercial land already
            under control by Johnson in the Houston MSA.  From an earnings
            perspective, Tricon's investment in Johnson will be immediately
            accretive.
        --  Company revenue is expected to grow as new communities are
            brought online and as the national housing market continues to
            recover; Johnson may look to strategically expand to other
            major U.S. markets to take advantage of large acquisition and
            recapitalization opportunities

About Tricon Capital Group Inc.

Founded in 1988, Tricon is one of North America's leading residential real 
estate investment companies. Tricon provides financing to local operators or 
developers in select markets in the United States and Canada, with a primary 
focus on housing in growing markets.  Our business objective is to invest for 
investment income and capital appreciation through our Principal Investment 
business segments and to earn fee income through our Private Funds and 
Advisory business.  We currently have $1.9 billion of assets under management, 
including 22,500 single-family lots, 6,300 multi-family units and a portfolio 
of over 3,300 U.S. single-family rental homes.  Since inception, Tricon has 
invested in approximately 160 transactions for development projects valued at 
more than $12 billion.  More information about Tricon is available at 
www.triconcapital.com.

About The Johnson Development Corp.

The Johnson Development Corp. was founded over 35 years ago and has grown into 
one of the nation's leading land companies, focused on the development and 
sale of highly amenitized master-planned residential and mixed-use 
communities.  Johnson currently operates in the Houston and Atlanta markets 
with fourteen communities under active development, including four of the top 
20 selling master planned communities in the United States.  More information 
about Johnson is available at www.johnsondevelopment.com.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected 
future events and financial and operating results and projections of the 
Company, including statements regarding future plans, objectives or economic 
performance that involve risks and uncertainties. Forward-looking information 
and statements are based on management's expectations, intentions and 
assumptions. If unknown risks arise, or if any of the assumptions underlying 
the forward-looking statements prove incorrect, actual results may differ 
materially from management expectations as projected in such forward-looking 
statements. Examples of such risks include, but are not limited to, the risks 
disclosed in the Company's final long form prospectus dated May 14, 2010, the 
risks disclosed in the Company's subsequent final short form prospectuses 
issued through July 26, 2013 and the risks described in the Company's 
continuous disclosure materials from time-to-time, as available on SEDAR at 
www.sedar.com. The Company disclaims any intention or obligation to update or 
revise any forward-looking statements, whether as a result of new information, 
future events or otherwise, unless required by applicable law.



SOURCE  Tricon Capital Group Inc. 
Margaret Whelan Chief Financial Officer Tel: 416-925-9744 
Email:mwhelan@triconcapital.com 
Stephanie Chow Financial Analyst Tel: 416-928-4337 
Email:schow@triconcapital.com 
PDF available at:  
http://stream1.newswire.ca/media/2014/04/15/20140415_C9947_DOC_EN_39308.pdf 
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CO: Tricon Capital Group Inc.
ST: Ontario
NI: REL FIN  
-0- Apr/15/2014 20:01 GMT
 
 
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