Singapore: Mapletree Group has formed a JV with Oakwood Worldwide and plans to to acquire and develop US$4 billion worth of serviced apartments worldwide.
The JV plans open more than 100 new properties around the world
over the next five years, and will see Mapletree acquire a 49
percent stake in Oakwood Asia Pacific Pte, Ltd (OAP).
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 will have an option to acquire additional interests in OAP following the successful deployment of the growth strategy.
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.
Howard Ruby, Oakwood Worldwide chairman, founder and CEO said: "This joint venture with Mapletree is the beginning of a new chapter in our company's 50-year evolution. 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."
Mapletree CEO 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," he added.
Mapletree is a leading Asia-focused real estate development, investment and capital management company headquartered in Singapore. It owns and manages S$24.6 billion of office, logistics, industrial, residential and retail/lifestyle properties.