AMB Property Corp. (AMB) recently signed a leasing agreement with global home furnishings retailer IKEA. The deal that involves a property measuring over 79,000 square feet in Amsterdam was signed for an undisclosed amount.
IKEA will utilize the leased facility to complement its presence in the market. The site is also strategically located in the close proximity of the Amsterdam city center and provides easy access to transportation facilities through highway connectivity.
Based in San Francisco, AMB is a real estate investment trust (REIT) that acquires, develops, operates and manages industrial real estate in North America, Asia and Europe. By the end of the second quarter of 2009, the company had 14 million square feet of operating and development properties in Europe, out of which about 3.6 million square feet was located in the Netherlands.
The majority of AMB’s portfolio comprises high throughput distribution (HTD) assets, which provide multiple options for quick movement and delivery of goods to the customer. HTD properties are either warehouses or industrial properties located near airports, seaports and ground transportation facilities, enabling rapid distribution of customers’ products. Since these centers are typically located in supply-constrained infill markets and global ports, they bring the company a significant pricing advantage.
Industry focused REITs have been one of the worst performing sectors in 2009. With a sagging global GDP, demand for industrial space continues to dry up. However, AMB is better equipped than its peers to weather the current downturn due to its strong portfolio.
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