Tricon

TRICON IX

Tricon IX Limited Partnership is a dedicated U.S. fund with committed capital of US$330 million. In conjunction with our local operating partners, our investment strategy in Trixon IX is to fund the purchase of distressed U.S. residential real estate—primarily finished or partially-finished lots and standing home inventory—at significant discounts from peak pricing and typical replacement cost through the acquisition of deeply discounted bank notes, REO (properties foreclosed by a bank and which are classified as real estate owned) and assets out of bankruptcy. Distressed investments are sourced through our local operating partners, who maintain contact with local banks and are privy to bankruptcy sales, and through our management’s relationship with regional or national banks.

Investments in Tricon IX have typically been financed on an “all cash” basis with little to no senior financing other than to acquire standing inventory homes. We believe that this capital structure provides us with the most flexibility and downside protection; as economic conditions in the United States improve and credit becomes more widely available, we will be in a position to apply a prudent amount of leverage to the individual investments which could increase investment returns.