AMB Property Corporation (NYSE:AMB) has announced second quarter 2005 acquisitions and development starts of 3.9 million ft² of distribution facilities with a total expected investment of $222.0 million. Activity in the quarter features launch of the company's development activity in Toronto, Canada, and the company's first acquisition in Lyon, France.
North American Markets:
Toronto - AMB began development in the second quarter on two distribution facilities in Toronto, North Americaâs fourth largest industrial market after Los Angeles, Chicago and the greater New York/New Jersey area. Torontoâs geographic position, consumer population and significant manufacturing base make it an important link in the global supply chain.
AMBâs development starts in Toronto include the companyâs first building in AMB Milton 401 Business Park, an anticipated 373,200 ftÂ² facility estimated to be completed for $17.6 million. A second development, the expected 194,300 ftÂ² AMB Annagem Distribution Centre, is under way for an estimated total investment of $12.2 million. The properties are designed to bring state-of-the-art distribution features to the market, including expanded trailer parking and 52â-wide column spacing for optimal racking and loading efficiencies. The facilities offer customers access to Torontoâs Lester B. Pearson International Airport and Highway 401, the Trans-Canada Highway.
AMB currently controls an additional 137 acres of land in the Toronto market to support approximately 2.7 million ftÂ² of development.
Mexico City â" During the second quarter, AMB began development of a third building in its Agave Industrial Park, located one mile from the NAFTA Highway. The anticipated 217,500 ftÂ² facility, which is expected to be completed for $13.3 million, features international standards for ceiling clear heights, dock door loading, truck courts, trailer storage and driver amenities. The new building will complement the two existing Agave buildings that AMB developed with its local partner, G. AcciÃ³n. The previously developed Agave buildings are fully leased to multinational companies including Kraft Foods, Adidas, Caterpillar Logistics, McGraw Hill and DuPont and have been contributed to AMBâs SGP Mexico private capital venture, AMB-SGP Mexico, LLC.
Atlanta â" The company acquired AMB Airlogistics Center, a three-building, 456,600 ftÂ² distribution center located in the Airport South submarket of Atlanta for a total acquisition cost of $27.4 million. The modern buildings, constructed between 2001 and 2003, serve customers with cargo needs at Atlantaâs Hartsfield-Jackson International Airport.
The company began development at AMB Horizon Creek with its local market partner, Seefried Properties. The estimated 204,300 ftÂ² property is located in the Gwinnett/I-85 submarket with convenient freeway access. AMB Horizon Creek Building 400 is expected to be completed for $9.1 million and is more than 50% preleased.
Los Angeles â" The acquisition of the 559,000 ftÂ² AMB Starboard Distribution Center, for a total investment of $38.7 million, increases AMB's customer offerings in Los Angeles, AMBâs largest market. The fully occupied facility is located in Torrance, with excellent access to Los Angeles International Airport and the Ports of Los Angeles and Long Beach.
In the Inland Empire city of Redlands, AMB has begun construction on AMB Redlands, an anticipated 699,400 ftÂ² distribution center with an estimated total investment of $24.8 million. Located within the Redlands Commerce Center, the property is designed for distribution customers seeking high quality bulk distribution space with proximity to greater Los Angeles.
Miami â" AMB and its local market partner, Codina Group, have added an anticipated 56,430 ftÂ² development in their 436-acre Beacon Lakes master planned park, the last remaining developable master planned park within Miami's Airport West Submarket. The new industrial condominium building, with an estimated completion price of $5.1 million, is design