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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  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/April2014/15/c9947.html  CO: Tricon Capital Group Inc. ST: Ontario NI: REL FIN  
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