NAB Asset Management, the wealth management division of National Australia Bank, has acquired a a close to 75 per cent interest in Orchard Street Investment Management, a £4 billion ($7.34 billion) London-based fund focused on investments in commercial property assets within the United Kingdom.
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The bank is expected to announce the acquisition to its shareholders before the market opens on Wednesday.
NAB Asset Management executive general manager Garry Mulcahy said the acquisition of Orchard Street was a stand-alone investment is unrelated to NAB's existing UK commercial real estate loan portfolio.
"The partnership is consistent with our strategy of identifying and partnering with the best investment talent from around the world to deliver for our clients. We have been looking for an opportunity to provide clients with access to this asset class," Mr Mulcahy said.
Founded in 2004, Orchard Street is invested in commercial property assets across the industrial, office and retail sectors.
Mr Mulcahy said the management and day-to-day running of Orchard Street would remain unchanged upon completion of the acquisition.
Chris Bartram will remain as chairman, and Philip Gadsden as managing partner.
As at August 31 NAB Asset Management owned, or had controlled majority interests, in 12 investment boutiques with $178 billion in funds under management.
The investment in Orchard Street brings NAB's portfolio of investment boutiques to 13, and adds approximately $5.5 billion to the wealth division's total funds under management.
