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SAN FRANCISCO, Dec. 29 /PRNewswire-FirstCall/ -- AMB Property Corporation
(NYSE: AMB), a leading global developer and owner of industrial real estate,
today announced the sale of the assets of AMB Institutional Alliance Fund I
for $618 million, or $106 per square foot. Formed in 1999, the multi-investor
fund owned 100 buildings totaling approximately 5.8 million square feet in
eleven U.S. markets.
"The opportunistic early sale of the Alliance Fund I properties allowed us
to take advantage of favorable market conditions, producing an internal rate
of return for our private capital investors in excess of 20%, as compared to
an original target return in the low teens," said Hamid R. Moghadam, AMBs
chairman and CEO. "Additionally, the sale produced a meaningful profit for our
stockholders in the form of a disposition gain on our 21% ownership interest
in the fund and associated incentive distributions."
AMB received cash and a distribution of an on-tarmac property, AMB DFW Air
Cargo Center I, in exchange for its 21% interest in the fund. AMB also
received a net incentive distribution of approximately $26 million in cash.
AMB Property Corporation. Local partner to global trade.(TM)
AMB Property Corporation 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 September 30, 2005 AMB owned, managed
and had renovation and development projects totaling 118.0 million square feet
(11.0 million square meters) and 1,109 buildings in 40 markets within ten
countries. AMB invests in properties located predominantly in the infill
submarkets of its targeted markets. The companys portfolio is comprised of
High Throughput Distribution(R) facilities -- industrial properties built for
speed and located near airports, seaports and ground transportation systems.
AMBs press releases are available on the company website at http://www.amb.com
or by contacting the Investor Relations department at 1-877-285-3111.
Some of the information included in this press release contains
forward-looking statements, such as those related to the companys
interpretation of trends regarding favorable market conditions, 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, difficulties in identifying properties to acquire
and in effecting acquisitions, our failure to successfully integrate acquired
properties and operations, our failure to divest properties we have contracted
to sell 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, financial market
fluctuations, changes in real estate and zoning laws, risks related to doing
business internationally 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 and certain
other matters discussed under the heading "Managements Discussion and
Analysis of Financial Condition and Results of Operations. Business Risks" and
elsewhere in our most recent annual report on Form 10-K for the year ended
December 31, 2004.
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