AMB Property Corp. (AMB), a leading real estate investment trust (REIT), has recently announced plans to offer 15.8 million common shares at $27.50 each to raise cash and repay debt. The company will also grant the underwriters an option to purchase an additional 2.4 million shares to cover any over-allotments. BofA Merrill Lynch (BAC), Morgan Stanley (MS), and J.P. Morgan (JPM) are acting as joint book-running managers for the public offering.
AMB expects to raise $416.4 million of net proceeds ($479.0 million if the underwriters exercise full over-allotments) from the offering. The company intends to utilize the proceeds for general corporate purposes, including acquisition of properties, repayment of debt and for development/redevelopment activities.
AMB is a leading industrial real estate company, with a strong portfolio of warehouses and distribution facilities in some of the busiest distribution markets of the globe. The company’s properties are located in supply-constrained infill markets at close proximity to airports, seaports, and ground transportation facilities, which enable swift distribution of customers’ products.
AMB operates as a vertically integrated company and enjoy large economies of scale through an extensive knowledge of domestic and international industrial real estate markets. The company has two lines of businesses: real estate operations, which involve the long-term ownership and operations of industrial properties; and private capital, which provides portfolio management and reporting services to joint venture partners. AMB earns acquisition, development and asset management fees in addition to priority distributions and promoted interest from the private capital business.
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