In this paper, we present an effective performance driven placement with global routing algorithm for macro cells. Our algorithm uses a hierarchical, divide and conquer, quad-partitioning approach. The quad-partitioning routine uses the Tabu Search technique. Our algorithm uses the concept of proximity of regions to approximate the interconnection delays during the placement process. In addition, our algorithm can handle modules whose positions are fixed or are restricted to a particular subregion on the layout frame. Our experimental results indicate the superiority of our placement method in terms of quality of solution and run time when compared to Lin and Du (1990).