Industrial real estate developer AMB Property Corp. (AMB) Wednesday revealed the formation of AMB China Logistics Venture I to develop, acquire, own, operate and dispose of logistics properties in key markets in China.
AMB will partner with HIP China Logistics Investments Limited and the joint venture will have overall equity commitment of $588 million with AMB contributing $88 million. The venture targets investments of up to $1.1 billion over the next four years.
The venture's initial target regions include the Yangtse River Delta, the Bohai Bay Area, the Pearl River Delta and Western China. Majority of AMB's operating and under-development properties, as well as its land in China, is expected to be contributed to the venture.
According to Guy Jaquier, president, Europe & Asia and president, Private Capital, "With six of the world's busiest ports and a limited supply of Class A distribution space, China represents a compelling investment opportunity. AMB remains committed to developing private capital ventures targeting its global growth markets. During the first quarter of 2011, we have added more than $1 billion in new third-party equity commitments to our platforms around the world."
Early this month, AMB said it formed a joint venture with Allianz Real Estate to acquire, own and operate logistics real estate tied to global trade and located in major ports and distribution markets in the Eurozone.
AMB closed Tuesday's regular trade at $33.41, down from the prior close of $34.09, on 2.11 million shares.
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