Dubai-based Nakheel has increased its stake in Australia's Mirvac Group Limited to 12.5 per cent, a statement said.

The investment follows Nakheel’s purchase of 6.51 per cent economic interest in Mirvac in December 2007, which marked the beginning of a strategic partnership between the two groups, the statement said.

Mirvac said earlier on Thursday it had sold $300 million Australian of shares to Nakheel at A$5.20 each, or 7.4 per cent more than Wednesday's closing share price.

Mirvac is a leading integrated real estate group, listed on the ASX with more than $26.3 billion of activities under control across the real estate funds management and development spectrum.

Established in 1972, Mirvac has more than 30 years of experience in the real estate industry and has an unmatched reputation for delivering quality products across all of its businesses.

Chris O’Donnell, Nakheel CEO, said: “The Mirvac Group has an unmatched reputation in the development and ownership of residential and commercial real estate and is responsible for some of Australia's best residential projects - there are exciting possibilities ahead for both groups.

“Nakheel’s increased economic investment represents a strategic holding and a long-term partnership with Mirvac. As Nakheel looks to broaden its international remit, it makes perfect sense to work alongside a like-mind company. We have identified many options in Australia and overseas to consider joint venturing with Mirvac, including its bid with Leighton Properties for Barangaroo in East Darling Harbour. Mirvac, like Nakheel, is committed to the provision of exceptional service, outstanding developments, and sound investment opportunities.” - TradeArabia News Service