SAN FRANCISCO, Dec. 22, 2010 /PRNewswire/ -- AMB Property
Corporation® (NYSE: AMB), a leading owner, operator and developer
of global industrial real estate, today announced the formation of
AMB Brazil Logistics Partners Fund I, L.P. The fund's investment
strategy is to develop, acquire, own, operate, manage and dispose
of logistics properties primarily within AMB's target markets in
Brazil, namely Sao Paulo and Rio de
Janeiro.
"Economic growth in Brazil is
driving the expansion of its consumer class, and in turn the need
to distribute greater amounts of product," said Eugene F. Reilly, president, Americas. "The
current supply of logistics facilities in Sao Paulo and Rio de
Janeiro does not meet the growing needs of the businesses
serving the approximately 33 million inhabitants of these regions.
We are developing Class A distribution facilities to meet this
demand."
AMB's partner in the fund is a major university
endowment. The initial third-party equity investment will be
approximately R$360 million
(USD$211 million) and the joint
venture's overall equity commitment is R$720
million (USD$422 million),
including AMB's 50 percent co-investment. The fund is not expected
to utilize third-party debt financing. The fund will participate in
the development program that AMB previously established with its
local Brazil partner, Cyrela
Commercial Properties S/A - CCP (Bovespa: CCPR3.BZ).
"Our private capital business is a significant growth engine for
AMB, allowing us to offer investors the opportunity to co-invest
with us across geographies and risk/return spectrums," said
Guy F. Jaquier, president,
Europe & Asia and president, Private Capital.
"Year-to-date we have added more than USD$630 million in new, third-party equity to our
private capital vehicles in the U.S., Latin America and Europe."
At closing, the fund acquired approximately 639,300 square feet
(59,400 square meters) of development properties, of which more
than 88 percent is pre-leased, as well as 205 acres in Sao Paulo and Rio de
Janeiro with an estimated build out potential of 3.6 million
square feet (339,000 square meters).
AMB Property Corporation.® Local partner to global
trade.™
AMB Property Corporation® is a leading owner, operator and
developer of global industrial real estate, focused on major hub
and gateway distribution markets in the Americas, Europe and Asia. As of September
30, 2010, AMB owned, or had investments in, on a
consolidated basis or through unconsolidated joint ventures,
properties and development projects expected to total approximately
158.4 million square feet (14.7 million square meters) in 49
markets within 15 countries. AMB invests in properties located
predominantly in the infill submarkets of its targeted markets. The
company's portfolio comprises High Throughput Distribution®
facilities--industrial properties built for speed and located near
airports, seaports and ground transportation systems.
Some of the information included in this press release contains
forward-looking statements, such as statements related to the
investment opportunities in Brazil
and elsewhere in the world, the business plan of the fund, the
Brazilian economy, the funding of equity commitments, and AMB's
private capital business, which are made pursuant to the
safe-harbor provisions of Section 21E of the Securities Exchange
Act of 1934, as amended, and Section 27A of the Securities Act of
1933, as amended. Because these forward-looking statements involve
numerous risks and uncertainties, there are important factors that
could cause our actual results to differ materially from those in
the forward-looking statements, and you should not rely on the
forward-looking statements as predictions of future events. The
events or circumstances reflected in the forward-looking statements
might not occur. You can identify forward-looking statements by the
use of forward-looking terminology such as "believes," "expects,"
"may," "will," "should," "seeks," "approximately," "intends,"
"plans," "forecasting, " "pro forma," "estimates" or "anticipates"
or the negative of these words and phrases or similar words or
phrases. You can also identify forward-looking statements by
discussions of strategy, plans or intentions. Forward-looking
statements should not be read as guarantees of future performance
or results, and will not necessarily be accurate indicators of
whether, or the time at which, such performance or results will be
achieved. There is no assurance that the events or circumstances
reflected in forward-looking statements will occur or be achieved.
Forward-looking statements are necessarily dependent on
assumptions, data or methods that may be incorrect or imprecise and
we may not be able to realize them. We caution you not to place
undue reliance on forward-looking statements, which reflect our
analysis only and speak as of the date of this press release or as
of the dates indicated in the statements. All of our
forward-looking statements are qualified in their entirety by this
statement. We assume no obligation to update or supplement
forward-looking statements. The following factors, among others,
could cause actual results and future events to differ materially
from those set forth or contemplated in the forward-looking
statements contained in this press release: any material adverse
change in the financial or securities markets within or outside
the United States or in political,
financial or economic conditions within or outside the United States or any material outbreak or
material escalation of hostilities within or outside the United States or declaration by
the United States of a national
emergency or war or other material calamity or crisis within or
outside the United States,
including, without limitation, an act of terrorism, any suspension
or limitation of trading in securities generally or in any of the
securities of AMB by the SEC, by any exchange that lists such
securities or in any over-the-counter market, any declaration by
any governmental authority of a general banking moratorium, any
financial market fluctuations, actual or perceived changes in
general economic conditions, global trade or in the real estate
sector, inflation risks, an actual or perceived downturn in the
U.S., California or global
economy, and certain other matters discussed under the heading
"Risk Factors" and elsewhere in our annual report on Form 10-K for
the year ended December 31, 2009.
SOURCE AMB Property Corporation