LOS ANGELES, March 1 /PRNewswire/ -- Oakwood Worldwide, the largest global provider of corporate housing, announced that property-owning partnerships affiliated with Oakwood Worldwide have signed an agreement with Archstone-Smith (NYSE: ASN), one of the nation's largest and most respected apartment companies, under which Archstone-Smith will acquire up to 30 apartment properties for approximately $1.4 billion. The 30 properties contributed to Archstone-Smith represent over 10,000 units and are located in 29 cities across the United States. Howard F. Ruby, Chairman of Oakwood Worldwide, said: "We are very pleased to have reached this agreement with Archstone-Smith, which lets the investors in the property-owning partnerships achieve the financial flexibility they have long desired." He went on to say that the transaction will not involve Oakwood Worldwide's Corporate Housing or International businesses. Under the terms of the agreement, Oakwood Worldwide will also lease back and retain management of 15 of the 30 properties contributed to Archstone-Smith, which support its core business of furnished corporate housing. These 15 properties, representing 6,097 units, include Oakwood Worldwide's flagship properties in Toluca Hills, Marina Del Rey, and San Jose, California; Arlington and Falls Church, Virginia; and Seattle, Washington. Oakwood Worldwide and Archstone-Smith have also agreed to explore additional opportunities to leverage Oakwood Worldwide's expertise in the management of corporate housing and furnished apartments. "Oakwood Worldwide is the recognized global leader in the corporate and furnished apartment business, and we look forward to pursuing mutually beneficial opportunities to partner with Archstone-Smith as one of its preferred corporate housing providers for our national apartment portfolio," said R. Scot Sellers, Archstone-Smith's Chairman & Chief Executive Officer. Mr. Ruby added: "The transaction also positions Oakwood Worldwide to extend its presence in key corporate housing markets. Archstone-Smith's apartment communities are in highly attractive markets and I am confident we can find opportunities that will enable us to offer a larger range of solutions to our corporate clients." Upon completion of the transaction, Oakwood Worldwide will continue to manage over 20,000 corporate housing and furnished apartment units around the world. "Oakwood Worldwide will progressively look for global expansion opportunities that will meet the needs of our corporate housing clients while strengthening our leadership position as the world's largest global provider of corporate housing," said Mr. Ruby. The transaction is subject to customary closing requirements and is expected to close late in the second quarter of 2005. About Oakwood Worldwide Founded in 1960 by Howard F. Ruby, Ed Broida, and Bob Franks, Oakwood Worldwide (www.oakwood.com), a privately held corporation, is the largest global provider of corporate housing and an innovative leader in apartment management with locations throughout the United States, the United Kingdom, and Asia.
SOURCE Oakwood Worldwide