Residential property manager Touchstone Asset Management has acquired rival Castle Group, with the aid of a £3.5 million investment from Northern VCT series operator Northern Venture Managers.

Based in Bath, Touchstone manages around 4,500 residential sites around the country and also offers receivership and outsourced accounting services to its property sector peers. Castle, meanwhile, boasts a portfolio of 6,500 properties (managed for various corporate clients) in addition to Calbarrie, a fire extinguisher/emergency lighting maintenance business.

‘This is an exciting development for Touchstone,’ says chief executive Tim Saunders. ‘We are aiming to build a property services group which will concentrate on niche areas. Our focus will remain on residential property management and there are good opportunities in other market areas including receivership, accounting services and the health and safety testing services provided by Calbarrie.’