Mapletree Investments and California-based Oakwood Worldwide have signed a multibillion-dollar deal to acquire and develop serviced apartments.
Under the deal, Mapletree will acquire a 49 per cent stake in Oakwood Asia Pacific — the United States firm’s serviced apartment business in Asia — for an undisclosed amount.
The joint venture then aims to acquire and develop some US$4 billion (S$5 billion) worth of corporate and serviced apartment assets within Asia, Europe and North America.
Both companies said in a joint statement on Wednesday that this will see the opening of more than 100 new properties around the world under the Oakwood brand over the next five years.
Mapletree said it will directly acquire and develop serviced apartments under a licence to use the Oakwood Worldwide brands in all markets outside of North America.
Meanwhile, Oakwood Worldwide will also source and manage acquisition and development deals for Mapletree within North America.
Mapletree’s group chief executive officer Hiew Yoon Khong said in the statement that the 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,” he said.
“This sector is another key asset class which we are confident of building into a world class platform with Oakwood as a partner.”
Oakwood Worldwide has service apartments throughout the US, London and in the Asia Pacific region.
In the region, the serviced apartments are located in China, Hong Kong, India, Indonesia, Japan, Korea, the Philippines and Thailand.
Mapletree owns and manages S$24.6 billion of office, logistics, industrial, residential and retail/lifestyle properties as at March 31.
Source : Channel NewsAsia – 30 Apr 2014