AMB Property Corporation(R) Announces First Quarter 2006 Capital Deployment
Totaling $372 Million
$219 Million in New Development Projects and $153 Million in Acquisitions
at Strategic Locations in North America, Europe and Asia
SAN FRANCISCO, April 11 /PRNewswire/ -- AMB Property Corporation(R)
(NYSE: AMB), a leading global developer and owner of industrial real
estate, today announced 2.9 million square feet of new development starts
and 2.1 million square feet of acquisitions during the first quarter for an
estimated total investment of approximately $372 million. This includes
$229 million of development starts and acquisitions previously announced
during the quarter.
Development
Atlanta -- Building 200 at AMB Horizon Creek is a fully pre-leased,
88,400 square foot distribution facility with a projected total investment
of $5.9 million. AMB Horizon Creek, located in Atlanta's Gwinnet/I-85
submarket, will total approximately 482,400 square feet in 3 buildings when
Building 200 is completed.
Chicago -- AMB commenced development of AMB Mt. Prospect Distribution,
a 228,600 square foot build-to-suit facility that is fully pre-leased to
BAX Global, a leading transportation and logistics company, and one of
AMB's ten largest customers. The two-building development, located in
Chicago's O'Hare International Airport submarket, will be completed for a
projected investment of approximately $26.2 million. AMB's presence in
Chicago now totals approximately 14.3 million square feet of operating and
development facilities.
Shanghai, China -- AMB commenced its first development in China with a
185,500 square foot building at its AMB Jiuting Distribution Center in
Shanghai, where AMB owns an existing 151,700 square foot industrial
facility. The development will be delivered for a total projected
investment of $5 million.
Acquisition
Atlanta -- Strengthening its position as the largest industrial owner
proximate to Hartsfield-Jackson International Airport in Atlanta, AMB
acquired AMB Southridge Park for a total investment of $30 million. The
seven building, 438,200 square foot portfolio is part of an established
business park located in the land-constrained airport submarket.
Baltimore/Washington D.C. -- In the first quarter, AMB acquired the
fully-leased, 233,600 square foot AMB Granite Hill Distribution Center
within the Baltimore/Washington Corridor and proximate to
Baltimore/Washington International Thurgood Marshall Airport, for a total
investment of approximately $11.4 million. AMB now owns and operates
approximately 3 million square feet in this market.
Miami -- Expanding its presence in Miami, AMB acquired the 280,700
square foot AMB Blackfin Distribution for a total investment of
approximately $17.2 million. The facility is located in the Miami North
Dade/Hialeah submarket, providing access to the ports of Miami and
Everglades and Miami International Airport, the highest ranking U.S.
airport for international air cargo. AMB owns and operates approximately 6
million square feet in the Miami metropolitan area.
Northern New Jersey/New York -- AMB acquired a 14 building industrial
park, AMB Generation Industrial Park, totaling 298,100 square feet in New
Brunswick, New Jersey, proximate to Exit 9 of the New Jersey Turnpike, for
a total investment of approximately $26.5 million. AMB owns approximately
10 million square feet in its Northern New Jersey/New York market, where
the area's airports collectively rank second in the U.S. in international
cargo volumes, and its ports collectively rank second in the U.S. in total
container traffic volumes.
Seattle -- In the first quarter, AMB expanded its presence in Seattle
to 8 million square feet, by acquiring the 327,000 square foot AMB Upland
Distribution Center for a total investment of approximately $21 million.
The four-building property is located in the North Kent Valley submarket,
proximate to Sea-Tac International Airport and the port of Seattle via
nearby Interstate 5.
Previously Announced During the Quarter
-- Guadalajara, Mexico -- AMB began development of the 473,700 square
foot AMB Arrayanes Building 2 with local partner G. Accion, for a total
expected investment of $19.8 million.
-- Hamburg, Germany -- AMB acquired four distribution facilities
aggregating approximately 561,300 square feet for a total investment of
approximately $47.3 million.
-- Mexico City, Mexico -- With local partner G. Accion, AMB started
development of two buildings comprising approximately 943,900 square feet
in its AMB Tres Rios Industrial Park, for a projected total investment of
approximately $54.9 million.
-- Osaka, Japan -- AMB commenced development of the approximately
981,700 square foot AMB Amagasaki Distribution Center 2, with local
development partner AMB BlackPine, for a total expected investment of $107
million.
AMB Property Corporation(R). Local partner to global trade.(TM)
AMB Property Corporation(R) is a leading owner and operator of
industrial real estate, focused on major hub and gateway distribution
markets throughout North America, Europe and Asia. As of March 31, 2006,
AMB owned, or had investments in, on a consolidated basis or through
unconsolidated joint ventures, properties and development projects expected
to total approximately 118 million square feet (11 million square meters)
and 1,070 buildings in 42 markets within eleven countries. AMB invests in
properties located predominantly in the infill submarkets of its targeted
markets. The company's portfolio is comprised of High Throughput
Distribution(R) 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 those related to our expectations for
completion of developments and redevelopments, square footages of
development and redevelopments and total expected investment dollars, 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 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 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," "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 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 only as of the date of this report or the dates
indicated in the statements. 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: defaults
on or non-renewal of leases by tenants, increased interest rates and
operating costs, our failure to obtain necessary outside financing,
re-financing risks, difficulties in identifying properties to acquire and
in effecting acquisitions, our failure to successfully integrate acquired
properties and operations, our failure to divest properties on advantageous
terms or to timely reinvest proceeds from any divestitures, risks and
uncertainties affecting property development and construction (including
construction delays, cost overruns, our inability to obtain necessary
permits and public opposition to these activities), our failure to qualify
and maintain our status as a real estate investment trust, environmental
uncertainties, risks related to natural disasters, changes in general
economic conditions or in the real estate sector, changes in real estate
and zoning laws or other local, state and federal regulatory requirements,
a downturn in the U.S., California, or the global economy, risks related to
doing business internationally, losses in excess of our insurance coverage,
unknown liabilities acquired in connection with acquired properties or
otherwise and increases in real property tax rates. Our success also
depends upon economic trends generally, including interest rates, income
tax laws, governmental regulation, legislation, population changes, various
market conditions and fluctuations and those other risk factors discussed
under the heading "Risk Factors" and elsewhere in our most recent annual
report on Form 10-K for the year ended December 31, 2005.
