CIT Group has reached an agreement to sell its 30% ownership stake in the commercial aircraft leasing joint ventures TC-CIT Aviation Ireland and TC-CIT Aviation US to its joint venture partner Tokyo Century Corporation (TC), as part of its strategy to focus on its middle-market offerings.

The deal is expected to close by the end of March, subject to the satisfaction of customary closing conditions. Following this transaction, TC will be the sole owner.

Ellen Alemany, CIT chairwoman and chief executive officer, said: “Last year we made the strategic decision to exit the commercial aircraft leasing business and focus CIT on our leading middle-market and small business lending platforms that can be supported by our growing banking franchises. This transaction to exit the aviation joint ventures is another point of progress in that plan.”

She added: “We remain focused on completing the strategic actions to exit the joint ventures, as well as the previously announced sale of CIT Commercial Air, and returning capital to our shareholders.”

In October 2016, the company announced a definitive agreement to sell CIT Commercial Air, its commercial aircraft leasing business, to Avolon Holdings (Avolon), the international aircraft leasing company and a wholly-owned subsidiary of Bohai Capital Holding Co.

The TC-CIT joint ventures were established in October 2014 through a 70% equity contribution by TC and 30% equity contribution by CIT. They were excluded from the sale to Avolon.