NEW YORK--(BUSINESS WIRE)--AREA Property Partners (AREA), a leading global real estate investor and fund manager, today announced the formation of a strategic partnership with National Australia Bank Ltd (NAB), an international financial services organization and one of Australia’s largest listed institutions. As part of this new partnership, NAB has acquired a 35% minority, non-controlling interest in AREA. 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.
For AREA, founded in 1993, this 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 billion.
“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 L 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,” Lee S. Neibart, AREA’s Global Chief Executive Officer said. “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.”
Among its strengths, Neibart noted that NAB has a significant institutional distribution capability covering the Australia and New Zealand markets – which represent the world’s 4th largest asset management market with $1 trillion in Assets under Management.
“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. We believe in AREA’s ability to deliver high quality investment solutions for its investors and therefore have high confidence in AREA’s future prospects.”
Park Hill Real Estate Group LLC served as advisor to AREA in this transaction, and Berkshire Capital Securities LLC served as advisor to NAB.
About AREA Property Partners
AREA Property Partners, formerly known as Apollo Real Estate Advisors, is a leading international real estate investor and fund manager on behalf of government and corporate pension funds, sovereign wealth funds, insurance companies, foundations, endowments, and high net worth individuals. Since the firm’s founding in 1993, AREA Property Partners has invested in over 500 transactions with an aggregated value in excess of $60 billion. Headquartered in New York, the firm has offices in Atlanta, Los Angeles, San Francisco, London, Paris, Luxembourg and Mumbai. AREA’s funds target a broad range of opportunistic, value-added and debt investments in real estate assets throughout North America, Europe, and India. For more information, visit the firm’s website at www.areapropertypartners.com.
About nabInvest
nabInvest is part of the National Australia Bank Group (www.nabgroup.com). nabInvest partners with quality investment management firms, enhancing their capabilities with the support of the NAB Group’s resources. This can include back office support and assistance with product and distribution services along with custody and corporate governance functions. nabInvest’s business partners are Cambridge Industrial Trust Management, Lodestar Capital Partners, Fairview Equity Partners, Pengana Capital, Northward Capital, Presima Inc. and Wiltshire Capital, as well as the Antares Capital and MLC Private Equity businesses.