Mr. David Berman reports

TRICON CAPITAL GROUP ANNOUNCES US$103.5 MILLION INVESTMENT TO DEVELOP AN ACTIVE ADULT COMMUNITY IN PHOENIX, ARIZONA

Tricon Capital Group Inc. has closed a $103.5-million (U.S.) investment to support the planned acquisition, development and sale of 1,079 homes in an age-targeted, resort-style community located on the border of north Scottsdale in Phoenix, Ariz. One of Tricon's institutional partners has committed $93.1-million (U.S.) with an additional $10.4-million (U.S.) being invested by Tricon. This represents the third transaction for Tricon with Shea Homes, one of the largest private homebuilders in the United States.

"Following our investments in Vistancia West and Lake Norman earlier this year, we are excited to further expand our relationship with Shea and our active adult portfolio in the Phoenix market," said David Berman, Tricon's chairman and chief executive officer. "Supported by investments from our institutional partners, these independent investment opportunities have contributed to growth of 44 per cent in our externally managed assets in the last 12 months."

Investment highlights:

• The project is located just east of the affluent north Scottsdale corridor, which boasts significantly higher income metrics than the greater Phoenix Metropolitan Area and no actively selling competitive new home communities currently exist.
• The active adult demographic is expected to be one of the fastest-growing population segments in the United States over the next decade and Phoenix is a popular destination for this cohort given its warm climate, low tax rates and relative affordability.
• Shea is one of the premier homebuilders in the United States and has been developing active adult master plans across the country under the Shea Trilogy brand since 1999 in order to focus on the needs of the retiring baby boom generation.
• The site has significant development infrastructure already in place which lowers development costs and risks. This includes an existing Ken Kavanaugh-designed 18-hole championship golf course, lakes, major spine roads, bridges and grading.
• The site is located adjacent to the Tonto National Forest and the McDowell Mountain Regional Park, offering spectacular views of the surrounding vistas and significant outdoor amenities including hiking and biking trails.
• This transaction increases Tricon's total assets under management by $103.5-million, or 5 per cent, to a total of $2.2-billion and externally managed assets by 8 per cent to $1.2-billion.

We seek Safe Harbor.