Capital management firm Mapletree Group and corporate housing provider Oakwood Worldwide have signed a multi-billion dollar deal and confirmed plans to open 100 new properties over the next five years.
Mapletree will acquire a 49 per cent stake in Oakwood Asia Pacific (OAP) and will target acquiring and developing some $4 billion worth of corporate and serviced apartment assets within Asia, Europe and North America.
In addition to the initial investment Mapletree will have an option to acquire additional interests in OAP following the successful deployment of the growth strategy.
Oakwood’s chairman Howard Ruby said the joint venture is “the beginning of a new chapter” in the 50-year old company.
“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 customised solutions in key markets throughout the world.”
Mapletree’s CEO Hiew Yoon Khong said: “This joint venture is an important step for us in our next five-year strategic growth plan.
“It 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.”
Earlier this month Oakwood opened a new property in London's financial district.