National Australia Bank (NAB) has bought a 35% minority stake in private equity group Area Property Partners (Area) as part of a new strategic joint venture which will provide the US firm with significant funding to expand its real estate business.

Area Senior Management, led by Chairman William Mack and Global CEO Lee Neibart, will continue to lead the business and its investment committees. Terms of the agreement were not disclosed.

Area said the partnership 'will enhance its global distribution capabilities and facilitate the growth of the firm's product offerings and best-in-class team'. To date, Area's funds have invested in over 500 transactions in the US, Europe and India with an aggregate value of $60 bn (EUR 43 bn).

'National Australia Bank is exactly the type of partner we sought to open greater international channels and to increase our capital for investment in real estate assets around the world,' said William Mack, Area's Chairman. 'Having sustained and grown our portfolio through the downturn, our partnership with National Australia Bank puts us in a unique position to take advantage of the recovery.'

Area will continue to operate under its existing leadership, with management maintaining full discretion over all investment decisions. Through its relationship with Area, NAB's direct asset management group, nabInvest, will fulfill its goal of adding a global real estate investment manager to its platform.

'Area, and its funds, will continue to be managed in the same way they always have - independently and with a disciplined approach that focuses on fundamental real estate analysis. We will continue to create a balanced portfolio of assets, both in terms of property type and geography,' added Lee Neibart, Area's Global Chief Executive Officer. 'The existing partners are keeping every dollar of this transaction in the company. In this way, we immediately augment our resources with permanent capital but - even greater - we will accelerate our growth going forward through our partnership with nabInvest.'

'For some time, we have been looking to partner with a top-tier global real estate investment manager to build out our investment capabilities,' said Garry Mulcahy, nabInvest's CEO. 'We recognize the importance of the real estate asset class to investors' overall asset allocation and the relevance of non-core assets in a global strategy.'

Park Hill Real Estate Group served as advisor to Area in this transaction, and Berkshire Capital Securities served as advisor to NAB.

Area Property Partners, formerly known as Apollo Real Estate Advisors, is based in New York, with offices in Atlanta, Los Angeles, San Francisco, London, Paris, Luxembourg and Mumbai.