Listed real estate company Folkestone has completed the acquisition of Austock's property funds management business.
Under the arrangement, Austock Group will retain a minority interest in the business for up to 12 months.
The property funds management business includes Austock Property Management (APM) which has now changed its name to Folkestone Investment Management (FIM).
Staff and management of Austock's property business have joined Folkestone, with the existing board of APM set to make up the FIM board.
Meanwhile, Australian Education Trust (AET) company secretaries Amanda Gawne and Adrian Hill have resigned to remain with Austock group. APM is the responsible entity of AET.
Folkestone chief financial officer Scott Martin and company secretary Jonathan Sweeny have been appointed joint company secretaries of FIM.
In September, Austock Group shareholders have approved the sale and extended the date for completion to 28 September.
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.
