TCC and Principal join forces for $1b development venture.

DALLAS, TEXAS AND DES MOINES, IOWA: Trammell Crow Company and Principal Real Estate Investors have established a national office development program, which will focus on the development of $750 million to $1 billion of new, class "A", office buildings in markets throughout the United States over the next five years.

Trammell Crow Company is one of the largest diversified commercial real estate services companies in the world. Principal Real Estate Investors, one of the largest managers of institutional real estate assets in the U.S., is the real estate investment arm of Principal Global Investors, a member of the Principal Financial Group.

Commenting on the newly established program, Jim Groch, Trammell Crow Company's chief investment ifficer, noted, "We are excited about this program with Principal Real Estate Investors. Trammell Crow Company is uniquely positioned to create considerable value, with our investment partners, by leveraging our development and services professionals throughout the country. This program is consistent with our stated strategy of creating capital programs and funds that provide investment opportunities for our investor clients and efficient capital for our development and investment activities. We expect to announce additional funds or programs this year."

John Frandson, managing director of structured equity for Principal Real Estate Investors, added, "We are pleased to partner with Trammell Crow Company in this landmark transaction. This is a win-win situation for our clients and Trammell Crow Company.

"In an increasingly competitive market for quality real estate, this joint venture will provide a strong pipeline of premium office product for investment of client funds over the next five years. In addition to providing a predictable pipeline, this transaction offers investments of potentially better value than individual property acquisitions."

The joint venture is expected to develop high quality office product in a number of cities across the United States, including Austin, Houston, Dallas, Scottsdale and Los Angeles County, among others.

Colin Murphy, an experienced industry veteran, will manage the program for Trammell Crow Company. John Frandson will manage the program for Principal Real Estate Investors.