National Australia Bank has bought a majority stake in UK property fund manager Orchard Street Investment Management.
The bank鈥檚 wealth division, NAB Asset Management, will own 75%, adding the company to its existing roster of 12 investment boutiques.
The move comes amid growing interest in European real estate among Australia鈥檚 institutions.
Garry Mulcahy, executive general manager of NAB Asset Management, said: 鈥淲e have been looking for an opportunity to provide our clients with access to this asset class.鈥�
In 2011, National Australia Bank acquired a stake in global real estate fund manager Area Property Partners, before selling the interest to Ares Management two years later.
Orchard Street, founded in 2004 and owned by its seven executive partners, runs a number of separate account mandates and funds for UK pension schemes and institutional investors, as well as Singapore鈥檚 sovereign wealth fund GIC. Over the past 10 years it has grown assets under management to 拢4bn.
Last month, it invested 拢95m in St Andrew鈥檚 Quay Retail Park on the outskirts of Hull on behalf of its UK Prime Property Partnership.
The day-to-day management will remain unchanged with partners Chris Bartram, Philip Gadsden, David Lee, Gary Felce, John Humberstone, Phillip Rodger and Barney Rowe continuing to manage client relationships. Bartram will remain as chairman and Gadsden will continue his role as managing partner and will head the senior management committee.
Bartram said NAB Asset Management and Orchard Street had a 鈥渟trong cultural fit鈥� and that the latter would benefit from 鈥渟ignificant investment expertise鈥� and 鈥渁 strong balance sheet鈥�.
