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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AMB PROPERTY CORPORATION FORMS PARTNERSHIP WITH CITY AND COUNTY OF SAN
FRANCISCO EMPLOYEES' RETIREMENT SYSTEM
AMB AND CCSFERS EXPAND RELATIONSHIP TO INVEST IN AND DEVELOP DISTRIBUTION
FACILITIES NATIONWIDE
PARTNERSHIP COMMITS UP TO $250 MILLION IN CAPITAL
San Francisco, February 14, 2001 -- AMB Property Corporation (NYSE: AMB), today
announced a private partnership with the City and County of San Francisco
Employees' Retirement System (CCSFERS) that will acquire, develop and redevelop
distribution facilities nationwide.
CCSFERS, a pension fund with $12 billion of assets under management, committed
$50 million of equity to be invested in industrial distribution properties. When
combined with AMB's equity investment of $50 million and debt financings of up
to $150 million, the committed capitalization of the partnership will total
approximately $250 million. AMB's equity was funded through a contribution of
industrial properties, including one facility that is under development.
The partnership's investment strategy is parallel to AMB's investment strategy
of acquiring and developing distribution facilities in major U.S. cities near
airports, ports and key interstate highways. The venture will invest in High
Throughput Distributions facilities serving customers that are expediting goods
through the supply chain. This new partnership builds upon a long-term alliance
between AMB and CCSFERS, and demonstrates the strength of AMB's co-investment
model.
"The private capital model is a key driver of AMB's growth plan," commented John
T. Roberts, president of AMB Investment Management, a subsidiary of AMB
providing services to private investors. "We have developed the infrastructure
over the last 18 years to provide services to pension plans, endowments and
foundations and we have a successful track record of investing on their behalf,"
he continued. "Our partnership structure ensures that AMB's interests are
aligned with our investors' interests. We are very pleased to expand our
long-standing relationship with CCSFERS."
Hamid R. Moghadam, chairman and CEO of AMB, said "The private funding initiative
will benefit stockholders over time by increasing AMB's return on invested
capital while delivering important investing services for our institutional
clients."
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AMB, as general partner, will receive distributions for acquisitions, asset
management, developments and possible promoted interests consistent with its
existing private capital partnerships such as AMB Institutional Alliance Fund I.
AMB Property Corporation is one of the leading owners and operators of
industrial real estate nationwide. As of December 31, 2000, AMB owned, managed
and had renovation and development projects totaling 92 million square feet and
1,005 buildings in 27 metropolitan markets. AMB targets High Throughput
Distribution(TM) properties - industrial properties located in major
distribution markets near airports, seaports and ground transportation systems.
These HTD(TM) facilities are built for speed and benefit from barriers to entry
due to their supply-constrained locations and proximity to large customer bases.
AMB - A tradition of nontraditional thinking(TM).
AMB's press releases are available on the company website at http://www.amb.com
or by contacting the Investor Relations department toll-free at 877-285-3111.
This press release contains forward-looking statements about business strategy
related to accessing private capital, the partnership between AMB and CCSFERS
and its business strategy and the benefit of private capital to stockholders.
These statements are made pursuant to the safe-harbor provisions of Section 21E
of the Securities Exchange Act of 1934. Forward-looking statements involve
numerous risks and uncertainties and should not be relied upon as predictions of
future events. The events or circumstances reflected in our forward-looking
statements might not occur. In particular, a number of factors could cause AMB's
actual results to differ materially from those anticipated, including, among
other things, defaults on or non-renewal of leases by tenants, increased
interest rates and operating costs, AMB's failure to obtain necessary outside
financing, difficulties in identifying properties to acquire and in effecting
acquisitions, AMB's failure to successfully integrate acquired properties and
operations, AMB's failure to timely reinvest proceeds from any such
dispositions, risks and uncertainties affecting property development and
construction (including construction delays, cost overruns, AMB's inability to
obtain necessary permits and public opposition to these activities), AMB's
failure to qualify and maintain our status as a real estate investment trust
under the Internal Revenue Code, environmental uncertainties, risks related to
natural disasters, financial market fluctuations, changes in real estate and
zoning laws and increases in real property tax rates. AMB's success also depends
upon economic trends generally, including interest rates, income tax laws,
governmental regulation, legislation and population changes. For further
information on these and other factors that could impact AMB and the statements
contained herein, reference should be made to AMB's filings with the Securities
and Exchange Commission, including AMB's quarterly report on Form 10-Q for the
quarter ended December 31, 2000.
AMB CONTACTS
INVESTORS MEDIA
Victoria A. Robinson Christine G. Schadlich
Director -- Investor Relations Vice President -- Corporate
Communications
Toll-free 877 285.3111 Direct 415 733.5233
Fax 415 394.9001 Fax 415 394.9001
Email ir@amb.com Email cschadlich@amb.com