Nakheel takes $400m stake in Australia firm

Nakheel did not say how much it paid for the stake, which was worth about A$400 million ($347 million) at the closing price of Mirvac's shares on Friday.

"We believe there are many potential opportunities for Mirvac and Nakheel to work together," Nakheel Chief Executive Chris O'Donnell said in a statement.

"As Nakheel looks to move forward its international mandate, it makes perfect sense to look at the possibility of joint developments with a like-minded company," he said.

Nakheel had not held talks with the Australian company, O'Donnell said.

Mirvac is a developer, fund manager and manager of properties, according to its Web site, which says its business lines are worth about A$26.3 billion. The fund management division's assets account for about half that.

Mirvac is developing residential properties in Australia and manages hotels in Australia, New Zealand and on Pacific islands, according to the Web site. Nakheel, which is working on $60 billion in projects, is one of the agencies the government of Dubai is using transform the Gulf Arab emirate into a business hub and tourist destination.