Integration of two companies positions AMB's Mexico platform for future growth SAN FRANCISCO, July 24
SAN FRANCISCO, July 24 /PRNewswire-FirstCall/ -- AMB Property
Corporation(R) (NYSE: AMB), a leading global developer and owner of industrial
real estate, today announced that, through an affiliate, it has acquired the
remaining 42% of G. Accion, S.A. de C.V. ("G. Accion") that it had not
previously owned, creating a unified and fully-integrated platform from which
AMB will continue to develop, lease, acquire and operate industrial real
estate in Mexico.
AMB began developing industrial real estate in Mexico in 2002, with G.
Accion as its development partner. Through a tender offer in 2005, affiliates
of AMB acquired a 39% interest in G. Accion. In the second and third quarters
of 2008, affiliates of AMB acquired the remaining 61% of G. Accion through a
two-stage transaction: 19% in June and 42% in July. As of June 30, 2008, AMB
held a 58% interest in G. Accion.
AMB's new subsidiary, re-named AMB Property Mexico, will operate as the
fourth region in the company's Americas division under Eugene Reilly,
president, the Americas. Luis Gutierrez, former CEO of G. Accion, will serve
as managing director of AMB's Mexico Region. "This integration is the natural
evolution of a long-standing and rewarding partnership between AMB and G.
Accion," said Hamid R. Moghadam, AMB's chairman & CEO. "The addition of Luis
Gutierrez and the G. Accion team of experienced development and real estate
professionals enhances AMB's platform in Mexico. Importantly, the team brings
strong customer relationships and a keen understanding of the dynamics of the
Mexican supply chain, enabling us to capitalize on the growing importance of
Mexico as a manufacturing and trade partner with the U.S."
"We're pleased to join the AMB family and to continue our long and
mutually beneficial relationship," said Mr. Gutierrez. "We share AMB's vision
to provide our global customers with innovative and effective distribution
solutions and look forward to advancing Mexico as a vital link in the global
supply chain, especially against the backdrop of rising transportation costs
and the impact we believe this will have on global manufacturers' location
decisions."
In addition to Mr. Gutierrez, the following individuals joined AMB as
officers: Hector Ibarzabal, senior vice president, director of industrial;
Gerardo Ramirez, vice president, development; Jorge Girault, vice president,
real estate investments; Jesus Barrera, vice president, real estate
investments; Rafael Berumen, vice president, asset management; and Bernardo
Martinez, vice president, tax director. Eugene Reilly, AMB president, the
Americas said, "With a track record spanning more than 20 years, Luis and his
team are recognized as leaders in real estate development in Mexico. The newly
integrated company brings a full alignment of interests, enabling AMB to take
a more direct role in the management and growth of our Mexico business and the
leadership team to focus on their core strength -- industrial. We are excited
about the prospects for future expansion in Mexico."
As of June 30, 2008, AMB's Mexico portfolio totaled approximately 9.2
million square feet of operating and under development facilities, and land
capable of supporting up to approximately 6.8 million square feet of future
development. Target markets consist of Mexico City, Guadalajara, Monterrey,
Queretaro, Reynosa and Tijuana.
AMB Property Corporation.(R) Local partner to global trade.(TM)
AMB Property Corporation(R) is a leading global developer and owner of
industrial real estate, focused on major hub and gateway distribution markets
in the Americas, Europe and Asia. As of June 30, 2008, AMB owned, or had
investments in, on a consolidated basis or through unconsolidated joint
ventures, properties and development projects expected to total approximately
155.5 million square feet (14.5 million square meters) in 47 markets within 15
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.
AMB's press releases are available on the company website at
http://www.amb.com or by contacting the Investor Relations department at
+1 415 394 9000.
Some of the information included in this press release contains
forward-looking statements, such as the company's ability to develop, lease,
acquire and operate industrial real estate in Mexico and the company's future
business plans in Mexico, 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, 2007.
SOURCE AMB Property Corporation
