Oakwood, Mitsui Fudosan to Launch Japan Serviced Apartments

Business Wire, May 22, 2000

Business Editors

LOS ANGELES--(BUSINESS WIRE)--May 22, 2000

The leading global provider of corporate housing, Oakwood Worldwide, will dramatically advance its presence in Japan by joining into a joint venture (JV) with one of that nation's largest developers, Mitsui Fudosan. The JV will develop serviced apartments throughout Japan, with an emphasis on Tokyo and Osaka. Earlier this month and prior to signing of the JV, Oakwood opened its first Tokyo serviced apartment property.

Serviced apartments (often known as "corporate housing" in the U.S.) combine the spacious comfort of a furnished residence with hospitality services such as a 24-hour front desk and maid service. They are leased to a clientele primarily composed of business travelers and foreign expatriates.

"We are pleased to be the first international corporate housing company to establish a presence in Japan," said James Klein, President of Oakwood Worldwide. "There is tremendous demand for housing in Japan from our Fortune Global 500 clients."

The JV will combine Oakwood's brand name and 40 years of international management experience with the expertise of Mitsui Fudosan, which controls one of the largest supplies of condominiums in Japan. The JV will be a limited-liability company based on Japanese law with initial capital shares of 90% by Oakwood Asia Pacific and 10% by Mitsui Fudosan.

"We are looking to acquire, develop or convert properties into Oakwoods throughout Japan," said Klein.

Earlier this month, prior to the signing of the JV, Oakwood opened its first property in Tokyo, named Oakwood Residence Akasaka. The superbly located property in Minato-ku ward is Tokyo's first upmarket serviced apartment, with luxurious appointments, spacious floor plans and rates from US$8,000 - $12,000 per month. The 41 units are anticipated to be 100% leased by June. The property was developed by Mitsui Fudosan and is now owned by Colony Capital, an international investment firm.

Reservations for Oakwood Residence Akasaka are available through: www.oakwood.com, 1-800-888-0808 (U.S.), and 81-3-5572-8801 (Japan).

"Japan is the world's second largest economy and a critical part of Oakwood's global network," said Klein. "In addition to serving clients in Japan, our Tokyo sales office will be helping Japanese clients seek outbound reservations to other Oakwood locations around the world."

Led by founding partner and Chairman Howard Ruby, the privately held Oakwood Worldwide (www.oakwood.com) is the global leader in serviced apartments with more than 20,000 units located throughout North America, Asia and Europe.

Oakwood Asia Pacific is a joint venture between U.S.-based, privately held Oakwood Worldwide and Colony Capital. In addition to Tokyo, Oakwood Asia Pacific's portfolio includes properties in Bangkok, Thailand; Guangzhou, China; and Manila, Philippines.

Colony Capital is a private, international investment firm led by Thomas J. Barrack, Jr., Chairman and Chief Executive Officer. Since its formation in 1991, Colony has been one of America's most active and innovative investors, investing in excess of US$6 billion in more than 60 distinct corporate, property, and portfolio transactions. The firm is headquartered in Los Angeles, with offices in Singapore, its regional headquarters for the Asian Pacific region, Seoul, Tokyo, New York, Fort Worth (Texas), Hawaii, and Paris, France.