LOS ANGELES and SINGAPORE, April 30, 2014 /PRNewswire/ -- Oakwood Worldwide® and Mapletree Group have signed a corporate and serviced apartment joint venture that aims to open more than 100 new properties around the world over the next five years. Mapletree will acquire a 49 percent stake in Oakwood Asia Pacific Pte, Ltd. ("OAP"), Oakwood Worldwide's serviced apartment business in Asia, and will target acquiring and developing some US$4 billion worth of corporate and serviced apartment assets within Asia, Europe and North America.
The joint venture will draw on Mapletree's expertise in Asia and Oakwood Worldwide's strengths in Europe and North America to more than triple the number of branded Oakwood® buildings across the globe. In addition to the initial investment in OAP, Mapletree, a leading real estate development, investment and capital management company with operations across seven countries, will have an option to acquire additional interests in OAP following the successful deployment of the growth strategy.
The deal capitalizes on the extensive growth Oakwood Worldwide has experienced and the global expansion of its formidable Oakwood brand to meet growing demand for accommodations that offer the convenience and comforts of a fully furnished apartment with the amenities of a full-service hotel. Mapletree will directly acquire and develop serviced apartments under a license to use the Oakwood Worldwide brands in all markets managed by OAP outside of North America. Oakwood Worldwide will also source and manage acquisition and development deals for Mapletree within North America.
"This joint venture with Mapletree is the beginning of a new chapter in our company's 50-year evolution," said Howard Ruby, Oakwood Worldwide chairman, founder and chief executive officer. "As the corporate housing industry's pioneer, we are able to leverage our rich history and experience in development and acquisition to expand our managed apartment portfolio that, together with our global supplier network, offers our clients greater choice and more customized solutions in key markets around the world."
Oakwood Worldwide has branded properties throughout the U.S., London and in the Asia Pacific region where OAP manages the Oakwood-branded properties. These serviced apartments are located in China, Hong Kong, India, Indonesia, Japan, Korea, the Philippines and Thailand.
Mapletree's Group Chief Executive Officer Hiew Yoon Khong said: "This joint venture is an important step for us in our next five-year strategic growth plan. The joint venture will help Mapletree build our operational capability in the corporate and serviced apartments sector. This sector is another key asset class which we are confident of building into a world class platform with Oakwood as a partner."
"Oakwood's ability to deliver consistent and exemplary customer service made this joint venture very attractive for us. This joint venture will bring together two companies with different but complementary areas of expertise – Oakwood, with its experience and track record in operating corporate and serviced apartments, and Mapletree, a group with deep real estate knowledge and expertise, as well as network and deal access in Asia. I believe that the strengths of the two groups will see the Oakwood brand continuing to be the top-rated corporate and serviced apartment operator worldwide."
Bill Foltz, Oakwood Worldwide's chief financial officer and architect of the joint venture agreement, commended Mapletree's disciplined investment approach and the real estate acquisition and development expertise brought by their team.
"Mapletree saw the opportunity for investment into the corporate and serviced apartment sector and wanted a global platform and world-class brand to grow their portfolio," said Foltz. "This was a unique opportunity for us to align with an investor who has the size and capability to allow for rapid expansion of our brand. Mapletree is a first-class organization and that's why we knew they would be a great partner to expand our global offerings as they look to grow outside of the Asia Pacific region."
Goldman Sachs, sole financial advisor in the transaction, was instrumental in bringing together the parties and facilitated closing the agreement in a very efficient and timely manner.
The Oakwood Residence Roppongi T-Cube, located in Tokyo, is part of the Oakwood Worldwide portfolio of corporate housing and serviced apartments. Similar properties will be part of the five-year expansion plan.
ABOUT OAKWOOD WORLDWIDE
Oakwood Worldwide®, based in Los Angeles, Calif., is the leading global provider of corporate housing and serviced apartment solutions through its two well-known brands, Oakwood® and ExecuStay®. Both brands provide move-in-ready furnished housing designed to meet the needs of business travelers on long- and short-term assignments. Oakwood® has access to the largest selection of housing options and a presence in all 50 United States and more than 70 countries. ExecuStay is the preferred corporate housing partner of Marriott® International and is the only corporate housing brand where guests can earn Marriott Rewards® points for stays at any ExecuStay location in the U.S.
Mapletree is a leading Asia-focused real estate development, investment and capital management company headquartered in Singapore. Its strategic focus is to invest in markets and real estate sectors with good growth potential in Asia. By combining its key strengths as a developer, an investor and a capital manager, the Group has established a track record of award-winning projects in Singapore and delivered consistent and high returns from across various real estate classes in Asia.
As at 31 March 2014, Mapletree owns and manages S$24.6 billion of office, logistics, industrial, residential and retail/lifestyle properties. Currently, it manages four Singapore-listed real estate investment trusts (REITs) and five private equity real estate funds, which together hold a diverse portfolio of assets in Singapore and throughout Asia. The Group has also established an extensive network of offices in Singapore, China, Hong Kong SAR, India, Japan, Malaysia, South Korea and Vietnam to support its regional expansion. Mapletree's property portfolio includes award-winning projects in Singapore such as the VivoCity, Mapletree Business City, and Tata Communications Exchange as well as mixed-use developments in the region such as Future City and Nanhai Business City in China.
For more information, please visit www.mapletree.com.sg.
SOURCE Oakwood Worldwide