OAKWOOD Worldwide and Mapletree Group Singapore has announced a new joint venture that will roll out more than 100 Oakwood properties globally within the next five years.
Under the terms of the agreement, Mapletree will acquire and develop serviced apartments under the Oakwood brand in markets outside of North America. Oakwood Worldwide will contribute to the same portfolio for properties located within North America.
MapleTree will hold a 49 per cent stake in Oakwood Asia Pacific with an option to acquire additional interests later on, according to a press release.
Said Mapletree group CEO, Hiew Yoon Khong: “This joint venture is an important step for us in our next five-year strategic growth plan.”
He added: “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.”
Bill Foltz, chief financial officer of Oakwood Worldwide and architect of the joint venture agreement, commented: “Mapletree saw the opportunity for investment into the corporate and serviced apartment sector and wanted a global platform and world-class brand to grow their portfolio.
“This was a unique opportunity for us to align with an investor who has the size and capability to allow for rapid expansion of our brand. Mapletree is a first-class organisation and that’s why we knew they would be a great partner to expand our global offerings as they look to grow outside of the Asia-Pacific region.”