(Read more on the industrial market.)
SAN FRANCISCO-AMB Property Corp. has attracted $350 million (euros 263 million) from 20 institutions for its first investment fund focused on Europe. With 60% leverage, the fund has buying power of $1.1 billion (euro 820 million).
The locally based distribution REIT stoked the euro-denominated, open-end commingled fund with 4.7 million sf of distribution facilities (38 properties) valued at $585 million (euros 439 million) that it had previously developed or acquired. AMB's current development pipeline in Europe includes an additional three million sf that is expected to be contributed to the fund upon stabilization.
The investment focus of the fund is to acquire stabilized industrial distribution properties, including those developed by AMB, in the major metropolitan areas of Europe. Current target markets include Belgium, France, Germany, Italy, the Netherlands, Spain, the United Kingdom and Central/Eastern Europe.
AMB entered the European market in 2002. The name of the fund is AMB Europe Fund I, FCP-FIS. AMB has invested 20% of the equity in the fund and must maintain that percentage if the amount of equity in the fund grows.
As investment manager of the fund, and consistent with its existing co-investment fund structures, AMB will receive acquisition fees on future acquisitions and fees for asset and portfolio management services. Every three years, AMB has the ability to receive additional incentive distributions if it exceeds certain internal rate of return benchmarks.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
