AMB Property, Singapore Shake on $335-Mil Deal

SAN FRANCISCO-AMB Property Corp. is helping the Government of Singapore invest some money in industrial real estate. The locally based developer says it is forming a $335-million private partnership with GIC Real Estate Pte Ltd., the real estate investment subsidiary of the Government of Singapore Investment Corp., to own and operate distribution facilities in the US.

GIC, a global real estate investment manager with a multi-billion dollar investment portfolio, has put up $75 million in cash for the 50-50 joint venture, and AMB has put up $76 million in cash and properties. At closing, the joint venture also assumes $73 million of existing debt and AMB provides a short-term loan for $111 million that will be repaid with long-term financing proceeds. The venture expects to use financing of up to 65% of the total capitalization.

The joint venture will start out owning and operating 59 industrial buildings in six US metropolitan markets. As a general partner, AMB will receive distributions for acquisitions and asset management.