Formation completes sell-off

FORMATION Group, the AIM-listed property investment and development company has completed the sale of its wealth management business.

In line with deals announced last week, the latest disposal sees two former employees of subsidiary company Formation Asset Management, David McKee and Kevin McMenamin, buying the income streams of contracted clients.

The sale should raise £225,000 over the next three years.

Castlegate Capital – the new company set up by the pair – will pay around 1.5x the contracted income value over three years.

Formation Asset Management has now ceased trading in its own right and will be wound-down.