National Australia Bank's (NAB) direct asset management business, nabInvest, has acquired a 35 per cent interest in AREA Property Partners, a global real estate fund manager based in New York.
The acquisition continues to build out nabInvest's portfolio and is the third investment the firm has made in an overseas fund manager since the business was established in October 2007.
NAB said the acquisition was in keeping with its wealth management strategy, a part of which was to expand its participation in direct asset management through partnerships with selected, quality fund managers.
The strategic partnership with AREA built on NAB's acquisition of global real estate trust (REIT) manager Presima and also expanded its participation in the global real estate sector, MLC & NAB Wealth executive general manager of asset management Garry Mulcahy said.
"Real estate as an asset class continues to attract investor attention and, with limited growth of investment-grade real estate in Australia, increased demand will require offshore investment," Mulcahy said.
"NabInvest has sought to position itself with business partners that are able to meet investors' needs in this sector, initially in global REITs, and now in direct real estate.
"We believe AREA is a great fit for NAB given its expertise, scale and proven track record selecting and managing property investments in North America, Europe and Asia."
The remaining 65 per cent of AREA's equity will be owned by key AREA employees and investment professionals. Three NAB representatives will also join AREA's eight-member board.
