The company operating a residential complex at the edge of Century City has announced a $4 billion joint venture with a Singapore-based real estate development, investment, and capital management company, it was announced April 29.
Oakwood Worldwide, which manages Oakwood Apartments and owns a location less than one mile east of Pico Boulevard and Century Park East, has reportedly sold 49 percent of the company’s Asian operation to Singaporean firm Mapletree Group.
Both Oakwood and Mapletree reportedly aim to open more than 100 new properties worldwide in the next five years.
The joint venture is expected to acquire and develop about $4 billion worth of “corporate and serviced apartment assets” in Asia, Europe and North America.
“This joint venture with Mapletree is the beginning of a new chapter in our company’s 50-year evolution,” Howard Ruby, Oakwood Worldwide chairman, founder, and chief executive officer stated. “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.”
Both companies will assist the other in managing acquisitions and development deals within their respective home bases. Mapletree, for example, will use a license to the Oakwood brand to acquire and develop “serviced apartments” for Oakwood Worldwide in markets outside of North America.
Just the same, Oakwood Worldwide will, according to a statement issued by the firm, “source and manage acquisition and development deals for Mapletree within North America.”
“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,” Mapletree Group’s CEP Hiew Yoon Khong stated. “Oakwood’s ability to deliver consistent and exemplary customer service made this joint venture very attractive for us.”
Oakwood Worldwide, which is headquartered in West Los Angeles, maintains branded properties across the United States, in London, and throughout the Asia Pacific. With the Asia Pacific, Oakwood Worldwide’s Asian arm manages “serviced apartments” in China, Hong Kong, India, Indonesia, Japan, Korea, the Philippines, and Thailand.
Oakwood Worldwide’s chief financial officer and architect of the joint venture agreement, Bill Foltz, said in a statement the partnership should greatly benefit both his company and Mapletree Group.
“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,” Foltz stated. “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 organization 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.”
Goldman Sachs reportedly served as the sole financial advisor in the transaction.
The Oakwood Apartments property adjacent to Century City is located at 1420 Ambassador Street.
Oakwood Worldwide is based out of 2222 Corinth Avenue in West Los Angeles.