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AMB Closes Inaugural Japan Fund with $446M

SAN FRANCISCO-With debt, the yen-dominated fund is expected to acquire $2.23 billion of distribution facilities in major metropolitan areas across Japan. Locally based AMB is the fund sponsor and also a 20% equity participant.

By Brian K. Miller | Updated on July 05, 2005

SAN FRANCISCO-AMB Property Corp. kicked off its inaugural Japan fund on Friday with $446 million (49.5 billion yen) of equity . The locally based distribution REIT says that by putting up 25% equity for each acquisition, the yen-dominated fund should acquire $2.23 billion (247 billion yen) of distribution facilities in major metropolitan areas across Japan. The fund is being managed from AMB’s Asian headquarters in Singapore. The fund’s investment focus is to purchase stabilized industrial distribution properties, many of them developed by AMB with its Tokyo-based partner, AMB BlackPine. At closing, the fund owned six distribution facilities in Tokyo comprising approximately 915,400 sf that had previously been acquired by AMB. AMB’s current development pipeline in Japan includes an additional 2.5 million sf in Tokyo and Osaka that is expected to be contributed to the fund upon stabilization.AMB will receive an acquisition fee of 0.9% of the acquisition cost for each third-party acquisition by the fund, according to SEC documents. In addition, it will receive a priority distribution from the fund of 1.5% of third-party capital commitments for portfolio and asset management services, and incentive distributions of 20% over a 10% internal rate of return (after taxes and fees) to the investors and 25% over a 13% internal rate of return (after taxes and fees) to investors. JPMorgan Securities Inc. acted as placement agent for us in raising third-party equity for the fund.

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