GMAC Home Services Adds Hammond Residential To GrowingReal Estate Network; $4.2 Billion in Sales...

Business Editors

LIBERTY CORNER, N.J.--(BUSINESS WIRE)--March 13, 2000

GMAC Home Services, part of the GMAC Residential Holdings Corp., announced today it has reached an agreement to acquire Boston-based Hammond Residential Real Estate. Terms of the agreement were not disclosed.

Hammond's 1999 reported sales volume of $957,000,000 placed the firm among the top 100 residential real estate companies in the U.S., making the acquisition a significant addition to GMAC's already strong presence in New England. Hammond has offices in Boston, Brookline, Newton, Wellesley and Cambridge.

Hammond Residential Real Estate will continue to operate under the Hammond name as a division of GMAC Real Estate's New England subsidiary, through which the acquisition was structured. Saul B. Cohen, president and CEO of Hammond, will head up the Hammond division.

"Hammond has built a reputation for stellar customer service and solid performance, and its reputation for innovative marketing makes it the firm of choice for many of Greater Boston's most accomplished brokers," said Dick Schlott, president and CEO of GMAC Home Services.

"Bringing Hammond onto the GMAC Real Estate team will help us solidify our strategic reach in Boston and New England, a key regional market for GMAC," Schlott continued.

With today's acquisition, GMAC's New England network encompasses over 1,400 agents in 79 offices throughout Massachusetts and New Hampshire, with sales anticipated to exceed $4.2 billion for 2000.

"Adding Hammond is an excellent fit for GMAC Real Estate because of its service area, luxury homes, quality image, and a company culture that meshes well with ours," said Allen Sabbag, president of GMAC Real Estate. "In addition, this acquisition is in line with our 'keystone' strategy of expansion into key U.S. markets. Hammond's reputation for quality brokerage and consumer service mirrors another recent purchase we made in San Francisco, Pacific Union Real Estate. Both are very well managed, productive firms staffed with many of the leading agents in their respective markets."

"Our aim in joining with GMAC Home Services is to build on our existing strengths while adding GMAC's signature services such as mortgages and executive relocation," said Saul B. Cohen, president of Hammond. "Over the years, I have come to know many of the people now leading GMAC's entry into residential real estate, both regionally and nationally. I have high regard for their management group and look forward to growing Hammond with them in the years ahead."