Real estate fund manager Folkestone Limited (ASX:FLK) has inked a deal to buy a subsidiary of Austock Group Limited (ASX:ACK).
Subject to shareholder approval Folkestone will acquire all of Austock’s shares in Austock Property Funds Management and related entities in the property funds management business.
Austock Property manages ASX-listed Australian Education Trust (ASX:AEU) and Australian Social Infrastructure Fund (ASX:AZF).
Austock Group says it is pleased it can retain an interest in the property funds sector through its on-going investment in Folkestone.
Folkestone says the Austock Property acquisition is in line with its strategy to expand its funds management platform.
Folkestone rebounded to an interim profit of $711 million in the six months to December 31, 2011.