Mapletree acquires apartment complex in Silicon Valley for S$87.3m
- POSTED: 27 Aug 2014 16:43
The property is Mapletree’s first acquisition of a serviced apartment asset in the United States, following its partnership in April this year with Oakwood Worldwide.
SINGAPORE: Mapletree Investments acquired a 184-unit freehold apartment complex in the heart of United States' Silicon Valley for US$70 million (S$87.3 million), it announced on Wednesday (Aug 27).
According to the company's press release, The Cascades Apartments in Sunnyvale is an "un-serviced residential rental property", and will be retrofitted and upgraded into a modern serviced apartment. The property sits on 214,000 square feet of land, and has a gross building area of about 210,000 square feet spread over six apartment blocks.
The property is Mapletree’s first acquisition of a serviced apartment asset in the US following its partnership in April this year with Oakwood Worldwide. It will be fully owned by Mapletree and rebranded as Oakwood Silicon Valley.
The partnership saw Mapletree take a 49 per cent stake in Oakwood Asia Pacific Pte Ltd (OAP), the operator-manager of serviced apartments under the Oakwood brand in the Asia Pacific region and outside of North America.
Separately, Mapletree will make investments to acquire, develop and own serviced apartment assets in Asia, Europe and North America, which will be managed under the Oakwood brand.
Mr Chua Tiow Chye, Mapletree’s Group Chief Investment Officer, said: “This maiden acquisition of Oakwood Silicon Valley marks a good start to our partnership with Oakwood. Mapletree will continue to seek new investment opportunities in this asset class in Asia, the US and Europe.
"While this is our first serviced apartment venture in the US, the liquidity and transparency of the market will provide opportunities for us to participate in its recovering economy and scale up our business," Mr Chua added.