Austock Group shareholders have approved the sale of Austock Property Funds Management to listed real estate company Folkestone.
Approval for the sale was reached yesterday at a general meeting of shareholders.
As well as giving the green light to the transaction, shareholders agreed to extend the date for the sale's completion until 28 September.
"The extension until 28 September will enable ongoing consultation with key stakeholders in Austock's funds management business," Austock said in a statement to the Australian Securities Exchange.
In July, Austock Group advised the market it had reached an agreement for the sale of Austock Property to Folkestone for $11 million.
Austock non-executive chairman George Beaumont said that while the business had "considerable potential, Austock alone did not have the capacity to help it achieve that potential".
Austock Property Funds Management has about $555 million in growth assets and manages four funds: the Australian Education Trust, Australian Social Infrastructure Fund, Austock Childcare Fund and the wholesale unlisted CIB Fund.
In August, Austock posted a $16 million net loss after tax for the year ended 30 June, masking the "credible" performance of the company's property and life subsidiaries, Beaumont said at the time.
The result mostly comprised losses of $10.7 million from Austock's Securities business, which was sold to Intersuisse Holdings in March, the company said in its full-year results announcement.
"The overall losses mask the very credible performance in difficult markets of our wholly-owned subsidiaries, Austock Property Funds Management and Austock Life," Beaumont said at the time.
