Mapletree, Oakwood ink deal for corporate, serviced apartments

SINGAPORE — Mapletree Group has signed a multi-billion-dollar deal with California-based Oakwood Worldwide to buy and develop about US$4 billion (S$5 billion) worth of corporate and serviced apartments across the globe.

The deal will see Mapletree acquire a 49 per cent stake in Oakwood Asia Pacific, Oakwood Worldwide’s serviced apartment business in Asia, the Singapore real estate firm said yesterday. It did not disclose the exact amount of the deal.

The two firms will jointly open more than 100 new properties around the world over the next five years, namely in Asia, Europe and North America, the statement said.

This partnership “is an important step for us in our next five-year strategic growth plan”, Mr Hiew Yoon Khong, group chief executive officer at Mapletree, said in the statement. “The joint venture will help Mapletree build our operational capability in the corporate and serviced apartments sector.”

Under the agreement, Mapletree will acquire and develop serviced apartments under a licence to use the Oakwood Worldwide brands in markets outside North America. Meanwhile, Oakwood will source and manage acquisition and development deals for Mapletree within North America.

Oakwood Worldwide has branded properties throughout the United States, London and the Asia-Pacific region. In the region, these serviced apartments are located in China, Hong Kong, India, Indonesia, Japan, Korea, the Philippines and Thailand.

Mapletree owned and managed S$24.6 billion of office, logistics, industrial, residential and retail properties as of end-March. Agencies