Choice Properties Real Estate Investment Trust (Choice Properties) announced that it has entered into an agreement to sell a 30 property portfolio for an aggregate sale price of approximately $426 million to a third-party purchaser. The portfolio includes 27 stand-alone retail properties and three distribution centres across Canada.

“We are pleased to execute on this opportunity to recycle capital,” said Rael Diamond, President and Chief Executive Officer, Choice Properties in the press release. “Along with the recent issuance of equity, this transaction further strengthens our balance sheet by reducing leverage and providing additional capacity to fund our significant development program.”

The buyer, who was not immediately identified, also has an option to acquire two additional stand-alone retail properties for $29 million. BMO Capital Markets Real Estate Inc. is acting as an advisor on this transaction.

The transaction is scheduled to close on September 30, 2019.