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,
SOURCE Oakwood Worldwide