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EXHIBIT 99.2
FOR IMMEDIATE RELEASE
AMB PROPERTY CORPORATION FORMS $335 MILLION
PARTNERSHIP WITH GOVERNMENT OF SINGAPORE
REAL ESTATE INVESTMENT UNIT
GIC REAL ESTATE PTE LTD. ALLOCATES $75 MILLION TO INVEST IN U.S. DISTRIBUTION
FACILITIES
San Francisco, March 26, 2001--AMB Property Corporation (NYSE:AMB) today
announced a $335 million private partnership with GIC Real Estate Pte Ltd., the
real estate investment subsidiary of the Government of Singapore Investment
Corporation, to own and operate distribution facilities in the U.S.
GIC is a leading global real estate investment manager with a multi-billion
dollar investment portfolio, who has committed $75 million of equity to be
invested in a portfolio of distribution facilities contributed by AMB, a San
Francisco-based owner and operator of industrial real estate.
AMB contributed $76 million of equity through a combination of cash and a
contribution to the partnership of properties. At closing, the venture assumed
$73 million of existing debt and AMB provided a short-term loan to the venture
that will be repaid with long-term financing proceeds. The venture expects to
use financings of up to 65% of the total capitalization.
The venture will own and operate 59 industrial buildings in six U.S.
metropolitan markets. The operations of the new partnership with GIC are
consistent with AMB's investment strategy of owning, operating, developing and
redeveloping infill distribution properties located in major metro areas near
transportation hubs.
"GIC is one of the largest and most respected global real estate investors and
we are pleased to be aligned with their organization," said John T. Roberts,
president of AMB Investment Management, a subsidiary of AMB that provides
investment advisory services to institutional investors.
The co-investment venture provides GIC with the benefits of a national operating
company running 92 million square feet of distribution space. Additionally,
AMB's 50% interest in the partnership ensures alignment of interests among AMB
and GIC.
AMB, as general partner, will receive distributions for acquisitions and asset
management. AMB has the ability to receive additional distributions if it
exceeds certain internal rate of return benchmarks.
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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 GIC 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 September
30, 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