SINGAPORE (EDGEPROP) - The Ascott, CapitaLand Investment’s (CLI) wholly owned lodging business unit, is acquiring serviced apartment provider Oakwood Worldwide, from Mapletree Investments.

Read also: Oakwood to open 20 new properties in 2022, aims to double portfolio by 2025

Both CLI and Mapletree Investments share the same ultimate parent entity in the form of Temasek Holdings. The proposed transaction amount wasn’t disclosed in the announcement out this morning.

The acquisition, according to The Ascott, will increase its global portfolio by 81 properties and about 15,000 units. Oakwood’s approximately 8,500 operational units are seen to contribute to Ascott’s recurring fee income streams upon completion of the transaction, which is slated in 3Q 2022.

The acquisition will boost Ascott’s global presence to more than 150,000 units in about 900 properties across over 200 cities in 39 countries, adding new markets such as Cheongju in South Korea; Zhangjiakou and Qingdao in China; Dhaka in Bangladesh as well as Washington D.C.

With this acquisition, Ascott is “well ahead” to achieve or sign 160,000 units worldwide by 2023.

Kevin Goh, CLI’s CEO for its lodging businesses, describes the acquisition as part of Ascott’s roadmap to play a bigger role in this market. “There are significant synergies between Ascott and Oakwood, given our complementary footprint and product offerings,” he adds.

CLI plans to keep the Oakwood brand. Besides Ascott’s own brand, it runs its business via other brands such as Citadines, Quest and lyf.

“Besides strategic alignment, this acquisition is also notable to Ascott commercially. (Find Singapore commercial properties with our commercial directory)

Goh says that the acquisition will accelerate the growth of CLI’s asset-light business, with added recurring fee income streams, expanded lodging offerings and increased customer base.