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, Oakwood Worldwide’s serviced apartment business in Asia, and will target acquiring and developing some US$4billion 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 capitalises 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 US, 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.”
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.