Diversified REIT H&R Real Estate Investment Trust agreed to sell the majority of its retail properties in the U.S. for US$633 million, subject to customary closing conditions.

The sale price represents a 7.3% cap rate on 2018 forecast property operating income and involves 63 assets, with the transaction expected to close in June.

Sales proceeds will be used to partly repay US$205.9 million of mortgage debt on the portfolio, with the rest to finance Lantower Residential purchases and to repurchase units under H&R REIT's normal course issuer bid.