Trammell Crow Co. and ING Clarion will serve as co-investors on an industrial development program that carries a $500-million target price. The initiative will concentrate on creating new bulk warehouse distribution centers in such major markets as Chicago, Dallas, New Jersey, Florida, Atlanta and Los Angeles over the next few years.
'It´s the right time in the marketplace to facilitate industrial development,' Robert Sulentic, Trammell Crow´s chairman and CEO, tells GlobeSt.com, adding that he anticipates the program to spend the next two to five years acquiring the major market investments. 'We´re not relaxed about it; we´re aggressive to find appropriate development.'
According to Sulentic, this effort is a continuation of the strategy Trammell Crow followed throughout the last economic cycle as well as an extension of its relationship with ING, the US real estate arm of Dutch-based ING Group NV. Trammell Crow, which is ING Clarion´s largest industrial property service provider, has developed approximately $1.5 billion of industrial product since 1997.
In addition, Trammell Crow posted fourth quarter and year-end results yesterday. For the quarter ended Dec. 31, 2003, revenues totaled $210.5 million; revenues for the corresponding quarter of 2002 were $205.5 million. For the full year 2003, the company’s revenues totaled $707.8 million; revenues for 2002 were $734.1 million. Looking ahead, the company is targeting revenue growth primarily from new or expanded contracts with corporate outsourcing customers for facilities management, corporate advisory services and project management.