Trammell Crow Company
NYSE : TCC

October 04, 2005 11:29 ET

Trammell Crow Company Purchases 30 Percent of Chesterton Meghraj; Transaction Enhances TCC's Service Delivery Capability in Indian Markets

DALLAS--(CCNMatthews - Oct 4, 2005) -

Trammell Crow Company (NYSE:TCC), one of the largest diversified commercial real estate services companies in the world, announced it has purchased a 30 percent interest in and established a strategic alliance with Chesterton Meghraj Property Consultants Pvt Ltd (CMPC), India's leading property services company. TCC's interest was purchased from Meghraj Properties Limited. Effective immediately, CMPC will operate under the name Trammell Crow Meghraj. With this investment and strategic alliance, Trammell Crow Company has expanded its service delivery capabilities in Indian markets to support its U.S.-based clients.

Following the investment by Trammell Crow Company, Trammell Crow Meghraj will be owned jointly by Trammell Crow Company, Meghraj Properties Ltd. and Sundown Developments Ltd. Trammell Crow Meghraj, a full service property consultancy specializing in research, consultancy, agency, project management and property/facilities management services for all asset types, employs over 475 people across seven offices throughout India. Trammell Crow Meghraj manages 26 million square feet in India. Its client base spans corporations, institutions and governmental organizations, as well as foreign and Indian retailers, and includes such companies as British Airways, Cadbury, Dell, IBM, Reliance, EDS, John Deere, KPMG, McDonald's, and Pizza Hut. The company was the first property consultancy company in India to secure ISO 9001:2000 certification for its offices and services.

Financial terms of the agreement were not disclosed.

Trammell Crow Meghraj (TCM) will provide real estate services in India, Pakistan, Nepal, Bangladesh and Sri Lanka. TCM will be integrated into Trammell Crow Company's global operating platform, with access to technology, playbooks, best practices and subject matter experts.

Trammell Crow Company also will acquire a separate 30 percent interest in Workplace Management Consultants Pvt Ltd (WPM), a wholly owned subsidiary of CMPC that provides asset management services. TCC's effective ownership interest in WPM will be 51 percent. WPM manages over 18 million square feet of prime real estate in India, including call centers, corporate offices, malls, residential complexes, research and design centers, and hospitals.

Bob Sulentic, Trammell Crow Company's Chairman and CEO, said, "Some of our best and deepest client relationships in outsourcing and brokerage have facilities and growth plans for India. We expect Trammell Crow Meghraj to be an integral part of the service delivery model for these customers." In addition, Trammell Crow Company's strategic alliances with Savills plc, a leading property services company in Europe and Asia, and JJ Barnicke, a leading Canadian real estate services provider, offer an industry-leading service delivery model for meeting the needs of investors and corporate users on a global basis.

Alex Darragh, Managing Director of Trammell Crow Company's international operations, added, "Trammell Crow Meghraj is positioned to respond favorably to the current growth picture in Indian real estate markets." He cited the improving economic conditions that support growth of the middle class; global economic trends that encourage relocation of manufacturing, service and administrative functions to low wage countries; and the relaxation of foreign direct investment rules for real estate and infrastructure investments.

Anuj Puri, Managing Director of CMPC, said, "Chesterton Meghraj began operations in India ten years ago and we have seen opportunities in the Indian real estate sector grow multifold. Our strategic alliance with TCC will allow U.S. corporations, who are the largest overseas investors in India, an integrated real estate solutions platform that services their local requirements in India."

Rohin Shah, Managing Director of Meghraj Properties added, "The powerful combination of Trammell Crow Company and their alliance partners globally with Trammell Crow Meghraj locally will allow our successful business to grow by adding best U.S. practices to the high standards we have in India. Having concentrated on developing our local profile over the past ten years, our strategic alliance with Trammell Crow Company will widen our reach to the rest of the world's organizations that wish to come to India."

About Trammell Crow Company

Founded in 1948, Trammell Crow Company is one of the largest diversified commercial real estate services companies in the world. Through its Global Services Group, the company provides building management, brokerage and project management services to both investors in and users of commercial real estate. Development and investment services are provided through the company's Development and Investment Group. In addition to its full service offices located throughout the United States, the company has offices in Canada, Europe, Asia and Latin/South America focused on the delivery of real estate services to corporate customers. The company delivers brokerage services outside the United States through strategic alliances with leading providers -- in Europe and Asia, through Savills, plc, a leading property services company based in the United Kingdom; and in Canada, through JJ Barnicke, a leading Canadian real estate services provider. Trammell Crow Company is traded on the New York Stock Exchange under the ticker symbol "TCC" and is located on the Internet at www.trammellcrow.com

About Trammell Crow Meghraj

Trammell Crow Meghraj is India's leading international property consultant. Established in 1995, the company brought together the property expertise of the Chesterton International and the financial asset management experience of Meghraj. Trammell Crow Meghraj is a real estate consulting practise covering the needs of commercial business, manufacturing and warehousing, the retail sector and housing. With its seven full service offices in cities of Delhi, Mumbai, Bangalore, Kolkata, Chennai, Hyderabad and Pune, which is the widest spread of offices amongst any property consultant in India, Trammell Crow Meghraj has an experience of working in all major Indian cities as well as remote locations. This experience is not only in the field of consulting but also in agency, project and property/facilities management. This has made the company rich in experience and familiar with all major land laws in India. It is the first property consultancy in India to have acquired the ISO 9001:2000 certification.

www.chestertonmeghraj.com

About Meghraj Properties Limited

Meghraj Properties Limited was formed in 1973 to act as a private real estate fund manager for high net worth clients of Meghraj Group. Today it has under management about GBP 1 billion of assets in the UK allocated across sectors such as distribution warehouses, budget hotels, supermarkets, pubs and restaurants. Its client base remains little changed from those that the founder of Meghraj, MP Shah, serviced in the 1940's and 1950's. The family originated from Gujarat in North West India and migrated via Kenya to England in 1957. The group today offers real estate fund management in the UK, offshore trust and company management in Jersey, Geneva and Mauritius and real estate consultancy, fund management and financial services in India.

www.meghraj.com

Contact Information

  • Trammell Crow Company, Dallas
    Barbara Bower, 214-863-3020