The De La Salle Brothers will sell their Malvern school to fund compensation claims from victims of historical sexual abuse and to financially support ageing brothers.
The buyer, Melbourne Archdiocese Catholic Schools, will take over the running of the college for more than 1000 boys in years 5 to 12.
Lawyers say they have more than 50 ongoing claims against the De La Salle Brothers nationally.
A sale price was not disclosed, but the school, one of four owned by the brothers, has more than $27 million in net assets according to its financial accounts for the 2021 calendar year.
The Royal Commission into Institutional Responses to Child Sexual Abuse said Catholic Church data showed that 328 people made a claim of child sexual abuse to the De La Salle Brothers between 1980 and 2015.
The brothers accounted for 7 per cent of all claims made to a Catholic Church authority.