Singapore's Mapletree signs $5b serviced apartment deal

SINGAPORE - Mapletree Group, a Singapore-based property firm, has signed a joint venture agreement with Oakwood Worldwide, a provider of corporate housing and serviced apartments, to open more than 100 new properties around the world over the next five years.

Mapletree will acquire a 49 per cent stake in Oakwood Asia Pacific, Oakwood Worldwide's serviced apartment business in Asia. It aims to acquire and develop US$4 billion (S$5.02 billion) worth of corporate and serviced apartment assets within Asia, Europe and North America.

In addition to its initial investment, Mapletree will have an option to acquire additional interests in Oakwood Asia Pacific.

Mapletree's group chief executive Hiew Yoon Khong said the 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," he said.

Oakwood Worldwide has properties in the United States, London and in Asia Pacific countries including China, Hong Kong and India.