AMB acquires cargo space at seven U.S. airports

AMB acquires cargo space at seven U.S. airports

AMB Property Corp. has agreed to purchase 3.4 million square-feet of cargo space adjacent to seven U.S. airports from International Airport Centers.

AMB said the price tag is approximately $481 million, including $119 million of assumed debt.

The deal involves 37 buildings at or near international airports in Los Angeles, New York (John F. Kennedy), Miami, Houston, Boston, Seattle and Charlotte.

The largest parcel involves 11 buildings covering 817,000 square-feet at Los Angeles. The Charlotte segment includes 11 buildings covering 588,000 square-feet; JFK, four buildings of 527,000 square-feet, and Seattle, eight buildings of 514,000 square-feet.

Customers at the facilities include some of the world's largest logistics providers, including Deutsche Post World Net, Exel, Expeditors, FedEx Corp., Kintetsu, Kuehne & Nagel and Panalpina.

The first tranche, comprised of 25 buildings, closed Thursday for approximately $167 million and includes buildings in Los Angeles, Seattle, Miami and Charlotte, AMB said.

The San Francisco-based property developer said it expects the balance of to close by the third quarter of 2004 as construction and certain other customary closing conditions are met.

"All of the buildings are located in supply-constrained submarkets within an approximate 1.5-mile radius of their respective international airports and most were built or renovated within the last five years," said Hamid R. Moghadam, AMB's chairman and chief executive.

The new acquisitions will enable AMB to better serve its customers by providing immediate proximity to cargo-centric airports, he added.