Mumbai: Trammell Crow Meghraj, one of the largest players in the real estate consultancy business in India, is merging with Jones Lang LaSalle, a US-based real estate advisory firm.
The merged entity, christened Jones Lang LaSalle Meghraj, is expected to generate revenues of Rs400 crore by 2009, said Anuj Puri, who will be chairman of the firm. The combined firm will have 3,500 employees by then and will be headquartered in New Delhi.
The current combined revenues are around $70 million (Rs287 crore) with an employee strength of 2,800, he said.
The combined entity will have a market share of around 35% in terms of advisory services in one of the fastest growing sectors of the Indian economy, Puri added.
Financial terms of the proposed merger were not disclosed, but both firms said it will be an equal partnership.
Trammell Crow Meghraj was previously a 30:70 venture between real estate advisory firms Trammell Crow of the US and Meghraj of the UK. Meghraj, which had the option to buy out the 30% stake of Trammel Crow in the earlier joint venture, did so last month.
Meghraj was in negotiations with several US- and UK-based real estate advisory firms, including Jones Lang LaSalle and Savills Plc. of the UK for a partnership. After this merger, Trammell Crow will no longer have a presence in India.
Meghraj is promoted by UK-based entrepreneur Rohin Shah, who will hold a 50% stake in the merged entity.
The new company will offer additional advisory services in areas such as hospitality, capital markets, derivatives and asset management, especially mall management.
In 2007-08, the Indian real estate sector is expected to receive around $7 billion of investment, with $5 billion coming in as foreign direct investment. Of this, around $1.5 billion is expected to come in through capital market investments such as real estate investment trusts (REITs), which are currently not allowed to operate within India. But markets regulator Securities and Exchange Board of India is expected to finalize the guidelines for REITs shortly.