AMB Property Corporation Announces Fourth Quarter 2004 Capital Deploym

SAN FRANCISCO, Feb. 1 /PRNewswire-FirstCall/ -- AMB Property Corporation , a leading developer and owner of industrial real estate, today announced fourth quarter 2004 acquisitions totaling 3.1 million square feet and six new development and renovation projects comprising 1.6 million square feet for a total expected investment of $350 million. Investments in France, Japan, the Netherlands and the United States expand the company's holdings in key distribution hubs globally.

Paris -- With the acquisition of the 500,800 square foot (46,500 square meter) AMB CDG Cargo Center, AMB has established an on-tarmac presence at Paris Roissy Charles de Gaulle Airport, ranked second for air cargo tonnage and third for passenger traffic among European airports. AMB CDG Cargo Center is located in the airport's freight zone seven with a direct link to the A1 motorway providing convenient access to Paris and points north. The newly constructed property was acquired for a total expected investment of $39 million; AMB's presence in Paris now exceeds one million square feet. The facility is 100% leased to La Poste, France's largest and Europe's second- largest postal company.

Tokyo -- The acquisition of AMB Funabashi Distribution Centers 3 and 4 for a total expected investment of $21.5 million adds 301,600 square feet (8,480 tsubo) to AMB's existing distribution facility presence in Tokyo's supply- constrained submarket of Funabashi. The five-story facilities feature convenient access to greater Tokyo, Narita International Airport and expressway routes to Haneda Airport and the Yokohama industrial and port markets. Consistent with strong demand for distribution facility space in the submarket, the buildings are 98% leased to leading Japanese transportation companies including Nippon Logistech and Tokyo Nohin Daiko. AMB began investing in Japan in 2003 and now has a local portfolio of approximately 3.9 million square feet (108,900 tsubo) including both operating properties and committed developments in progress in Tokyo and Osaka.

Amsterdam -- During the fourth quarter, AMB expanded its presence in Amsterdam in two logistics parks with prominent access to Amsterdam Airport Schiphol, Europe's third-largest airport for cargo volume.

AMB has formed a joint venture to redevelop the last remaining industrial zoned parcel in the former Fokker Aircraft manufacturing campus, located immediately adjacent to Amsterdam Airport Schiphol. AMB and its partner, Delta Group, plan to create a state-of -the-art logistics park called AMB Fokker Logistics Park, located just two kilometers from the airport's main terminal with excellent access to Amsterdam City Center and the A4 and A9 highways connecting the site to Rotterdam, Brussels, Paris and Utrecht. Development has begun on the park's first building with a 313,200 square foot (29,100 square meter) facility expected to be completed for $44.3 million.

In the Schiphol Rijk industrial park, the company has acquired the 118,200 square foot (10,980 square meter) AMB Schiphol Distribution Center for approximately $15.8 million. Schiphol Rijk serves as the airport's primary second-line logistics park and is considered a premier site for international logistics and distribution operations. AMB's newly acquired facility is 100% leased to a global electronic manufacturing services company and is AMB's second facility in Schiphol Rijk Park.

Chicago -- AMB acquired the five building, 1.7 million square foot AMB Turnberry Distribution park for a total expected investment of $98.7 million. In addition to modern, highly functional bulk distribution facilities, the acquisition includes an 11.4-acre site for future industrial facility development. The Turnberry buildings expand AMB's relationships with several existing customers and bolster the company's presence in the key Chicago distribution corridor along the Thorndale Avenue/Elgin-O'Hare Expressway.

AMB has acquired two additional Chicago-area facilities to assist existing customers with growth and relocation needs within the AMB portfolio. During the fourth quarter, AMB acquired AMB Sivert Distribution in the Chicago submarket of Bensenville, known for its excellent access to O'Hare International Airport's south cargo area. The well-located 50,000 square foot facility was acquired for $2.7 million as part of a sale/leaseback transaction with Schenker, Inc., a top-five global freight forwarder. AMB is currently developing a 132,000 build-to-suit facility for Schenker's expanded Chicago operations in nearby Elk Grove Village.

In a separate transaction, AMB acquired the 50,800 square foot AMB District Industrial building for $2.2 million in the Chicago-O'Hare submarket of Itasca. The property complements AMB's existing 21 buildings in Itasca and provides larger facilities for a current AMB customer who had outgrown its neighboring building. AMB now serves customers in Chicago with a 13.9 million square foot portfolio.

Los Angeles -- To meet growing demand for ocean cargo distribution product from the Ports of Los Angeles and Long Beach, AMB has acquired AMB Layline Distribution Center for redevelopment. Located seven miles from the ports at the interchange of the I-405 and I-110 Freeways, AMB's estimated $26.3 million redevelopment plan calls for a 250,000 square foot cargo facility with 5.5 additional acres planned for container processing and truck trailer storage.

Minneapolis -- During the fourth quarter, AMB acquired a five-building portfolio located in three of Minneapolis' largest and most accessible infill industrial submarkets. AMB Northpoint Industrial Center, AMB Industrial Park Business Center and AMB Shady Oak Industrial Center were acquired for a total expected investment of $19.7 million, comprise 380,100 square feet and add well-occupied light industrial and bulk distribution facilities to AMB's existing 4.0 million square foot portfolio in Minneapolis.

Northern New Jersey -- In the fourth quarter, AMB began three redevelopments of existing AMB facilities in northern New Jersey comprising 887,440 square feet.

AMB has begun redevelopment of the 617,000 square foot Interstate Crossdock facility in Teterboro, New Jersey. The property was originally purchased in 2002 for its redevelopment potential and was leased back to the seller until the fourth quarter 2004. The estimated $53.6 million redevelopment plan will reposition the well-located asset into a highly functional Class "A" distribution facility with improved clear heights, loading space and trailer storage. The facility is 100% preleased.

In the heart of New Jersey's Meadowlands' submarket, AMB has begun redevelopment of two facilities in Carlstadt, New Jersey totaling 270,400 square feet for an estimated investment of $20.6 million. The redevelopment will provide the supply-constrained submarket with functional distribution facilities for customers requiring rapid access to Manhattan, the densely populated northern New Jersey region and the Ports of New York and New Jersey. AMB currently owns 10.3 million square feet in the northern New Jersey/New York area.

Dallas -- Completing its fourth quarter capital deployment activity, AMB began the planned $6.0 million development of Northfield Building 700, a 108,600 square foot distribution facility located approximately one mile from the cargo area of Dallas/Forth Worth International Airport, ranked eighth in the U.S. for international freight movement. AMB and its local market partner Seefried Properties have completed six prior Northfield Distribution facilities that are currently 92% leased to leading freight forwarders and international cargo logistics providers including Schenker, DHL Danzas Air & Ocean, Hellmann Worldwide Logistics, and Expeditors.

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 December 31, 2004, the company's most recent reporting period, AMB owned, managed and had renovation and development projects totaling 110.7 million square feet (10.3 million square meters) and 1,108 buildings in 38 markets within eight 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 1-877-285-3111.

Some of the information included in this report 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, 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 "Management's Discussion and Analysis of Financial Condition and Results of Operations . Business Risks" and elsewhere in our most recent annual report for the year ended December 31, 2003 in Amendment No. 2 on Form 10-K/A.