Both Rogers Chapman and Equis will gain much from their partnership. Amanda Seidl reports
Rogers Chapman this week joined the growing ranks of UK property advisers linking up with US consultancies.
The Thames Valley and airports specialist has signed a joint-venture agreement with US corporate property adviser Equis to create an international consultancy.
“Both sides are getting something significant. It will give us muscle and a hook into the US,” says Laurence Johnstone, Rogers Chapman’s managing director.
“This partnership gives Equis a spearhead into European real estate,” says Martin Woodrow, executive vice-president of Equis.
Chicago-based Equis has been searching for a UK partner for the past 18 months and had preliminary discussions with a number of firms before settling on Rogers Chapman.
“The service cultures of both companies are remarkably similar,” says Johnstone. “We immediately felt that there was a strong bond between us.”
Half of Rogers Chapman’s £7.4m annual turnover comes from consultancy and project management for a number of multinational clients such as Energis, Allied Domecq and British Airways.
“We don’t want to lose the other sides to our business, but we feel it is important to develop our corporate services and this will give our clients access to new skills and geographical markets,” says Johnstone.
Relocation management
Since an MBO in 1989, the firm has expanded its operations from office agency in the Thames Valley. In 1996, it set up a specialist airports division to manage British Airways’ 929,000m2 (10m sq ft) estate.
Two years ago, it created a wholly-owned subsidiary, Merlin Project Management, to handle relocation management and building surveying services to clients, and last year it formed a joint venture with Dublin airport specialist Shane Redmond.
“The rapid growth of the firm over the past five years led us to ask ‘where next?’” says Johnstone. “We saw our competitors forming global alliances and a number of clients have said that they would give us more work in Europe if we could demonstrate on-the-ground capabilities.”
The partnership agreement is to be worked out over the next six months but will not lead to a merger. “There will be no change in the ownership. We are proud of our independence and so is Equis,” says Johnstone. “We weren’t looking for a financial partner, we wanted an international dimension to our business.”
International business
“The partnership will provide both firms with an unrivalled ability to provide the international real estate support service that our clients demand,” agrees Woodrow. “It will enable us to further our individual international business goals and ambitions.”
The $70m turnover practice has 34 US offices and bases in Singapore, Australia, Mexico and Brazil. The company specialises in tenant representation for major US multinationals.
Although it already has an office in Hungary to service global car manufacturing client Delphi, Equis sees the link up with Rogers Chapman as a bridgehead into Western Europe despite the fact that the UK firm has no offices in mainland Europe.
Johnstone admits that the partners have not yet decided whether to open offices in mainland Europe. “We may look for a strategic base in Europe, or dedicate the skills from London,” he says.
He maintains that key clients of both firms are delighted with the joint venture.
“We think that it’s really exciting to be able to say to Energis or another client ‘can we help you in the States?’” says Rogers Chapman director Russell Meadows.
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Rogers Chapman |
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Dates back to 1866, but the modern firm was established in 1966. Its incorporation in 1987 was followed by an MBO in 1989 led by Tony Harris. The firm is now owned by seven directors and senior staff among the workforce of 70. Over the past five years, turnover has risen from £2.2m in 1996 to £7.4m for the year to April. Profits over the same period have risen from £150,000 to £1.7m Its wholly-owned subsidiaries, Airport Property Services and Merlin Project Management, make significant contributions to group turnover and are focused on occupier interests for major clients such as British Airways, HM Customs & Excise and BAA/Lynton. Rogers Chapman has three offices in the Thames Valley and a central London office. Since 1999, it also has an office in Dublin through a joint venture agreement with Shane Redmond. |
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Equis |
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Set up in 1984 by Michael Silver, who identified that no-one was looking after occupiers’ interests in property transactions. Equis is now dedicated to advising corporate clients on real estate. Based in Chicago, it has a staff of 400 in 34 offices in the US, where leading clients include AT&T, DaimlerChrysler, SBC/Ameritech, Worldcom and Xerox. It recently opened representative offices in Australia, Singapore, Brazil, Mexico and Hungary to support Delphi Automotive Systems. |
