SAN FRANCISCO, Dec. 22, 2010 /PRNewswire/ — AMB Property Corporation® (NYSE: AMB), a leading owner, operator and developer of global industrial real estate, today announced the formation of AMB Brazil Logistics Partners Fund I, L.P. The fund’s investment strategy is to develop, acquire, own, operate, manage and dispose of logistics properties primarily within AMB’s target markets in Brazil, namely Sao Paulo and Rio de Janeiro.

“Economic growth in Brazil is driving the expansion of its consumer class, and in turn the need to distribute greater amounts of product,” said Eugene F. Reilly, president, Americas. “The current supply of logistics facilities in Sao Paulo and Rio de Janeirodoes not meet the growing needs of the businesses serving the approximately 33 million inhabitants of these regions. We are developing Class A distribution facilities to meet this demand.”

AMB’s partner in the fund is a major university endowment. The initial third-party equity investment will be approximately R$360 million (USD$211 million) and the joint venture’s overall equity commitment is R$720 million (USD$422 million), including AMB’s 50 percent co-investment. The fund is not expected to utilize third-party debt financing. The fund will participate in the development program that AMB previously established with its local Brazil partner, Cyrela Commercial Properties S/A – CCP (Bovespa: CCPR3.BZ).

“Our private capital business is a significant growth engine for AMB, allowing us to offer investors the opportunity to co-invest with us across geographies and risk/return spectrums,” said Guy F. Jaquier, president, Europe & Asia and president, Private Capital. “Year-to-date we have added more than USD$630 million in new, third-party equity to our private capital vehicles in the U.S., Latin America and Europe.”

At closing, the fund acquired approximately 639,300 square feet (59,400 square meters) of development properties, of which more than 88 percent is pre-leased, as well as 205 acres in Sao Paulo and Rio de Janeiro with an estimated build out potential of 3.6 million square feet (339,000 square meters).