AMB Property Corporation to Increase Presence in Japan with New Developments in Osaka and Tokyo

Global distribution facilities developer and owner AMB Property Corporation today announced the acquisition of two separate parcels of land for warehouse distribution development in Japan. When complete, the planned developments will further establish AMB as a major industrial facilities provider in the supply-constrained districts of Japan that are integral to global trade.

In greater Osaka, AMB has acquired a 12.2-acre (4.9 hectare) parcel of land for development of AMB Amagasaki Distribution Center, a planned one million square foot (94,300 square meter) six-story distribution facility in the heart of the Osaka/Kobe port district. With construction set to begin immediately, the building is 50% preleased to a prominent Japanese logistics firm.

In Tokyo, AMB has acquired 4.8 acres (1.9 hectares) for development of AMB Ohta Distribution Center, an 840,000 square foot (78,000 square meter) seven-story multi-tenant logistics center in the Ohta section of western Tokyo, a primary distribution point for the Tokyo/Yokohama metro areas. Based on current development plans and exchange rates, total expected investment in the two facilities will aggregate approximately $266 million. Both facilities are being developed with AMB's Tokyo-based partner, AMB BlackPine.

"Development of state-of-the-art facilities supports Japan's efforts to modernize its distribution and logistics industry," said Hamid R. Moghadam, AMB's chairman and chief executive officer. "The scale and configuration of AMB's Amagasaki and Ohta Distribution Centers can play an important role in cost reductions and improved efficiencies for our customers' operations in Japan. The developments announced today extend AMB's strategy of providing customers with a network of facilities in key hub and gateway locations globally."

AMB Amagasaki Distribution Center

AMB Amagasaki Distribution Center marks AMB's entry into the Osaka market. The one million square foot distribution center will provide customers with a state-of-the-art facility of substantial scale and prominent profile in a supply-constrained section of western metro Osaka. The property is expected to be ready for occupancy in the third quarter of 2005.

Osaka, Japan's second largest city, is located in the Kansai region, a vital center of economic and industrial activity and an important distribution gateway to the global supply chain. The ports of Osaka and Kobe together handle 3.5 million TEUs annually, placing the region on par with the containerized cargo volume of the port of New York-New Jersey, the world's 14th busiest port by volume.

AMB Amagasaki Distribution Center is located in close proximity to the major distribution nodes in the area, including the Osaka central business district, the Port of Osaka and the Port of Kobe. The building is within one and three kilometers respectively of the Hanshin #5 and Hanshin #3 Expressways, offering direct access to the area's primary east-west transportation arteries.

AMB Ohta Distribution Center

AMB expands its presence in Tokyo with the planned development of AMB Ohta Distribution Center in Tokyo's premier western industrial submarket of Ota-ku. Located just 100 meters from the Wangan Expressway, the Class A warehouse will be notably close to essential distribution points in the region, including the Tokyo central business district, Haneda Airport (the world's fourth busiest airport by passenger volume) and the Port of Tokyo's Oi Container Terminal, a primary gateway to trade with China. In addition to nearby availability of passenger rail, the region's major cargo rail yard, JR Kamotsu, is located immediately east of the site, offering direct connectivity to Japan's extensive nationwide rail network.

When complete, the new facility will offer approximately 840,000 square feet (78,000 square meters) of fully ramped multi-tenant distribution space on seven floors with zoning for 24-hour utilization. The company expects to begin construction on AMB Ohta Distribution Center in September and to have the building ready for occupancy in the third quarter of 2005. Strong demand for modern, large foot print distribution centers is evident in the region's vacancy rate of less than five percent.

AMB's portfolio of existing facilities in Japan includes more than 600,000 square feet (57,000 square meters) of distribution centers fully leased to Japanese subsidiaries of the multinational manufacturing and distribution companies Pioneer Shared Services, Honda Express, Bridgestone Sports, Tokyo Air Cargo and SBS. The company and AMB BlackPine are currently developing the 1.7 million square foot (158,000 square meter) AMB Narita Air Cargo Center immediately adjacent to Tokyo's Narita International Airport, the world's second busiest airport for cargo volume.

AMB Property Corporation. Local partner to global trade(TM).

AMB Property Corporation is a leading owner and operator of industrial real estate, focused on major hub and gateway distribution markets throughout North America, Europe and Asia. As of June 30, 2004 AMB owned, managed and had renovation and development projects totaling 106.7 million square feet (9.9 million square meters) and 1,105 buildings in 37 markets within eight countries. AMB invests in properties located predominantly in the infill submarkets of its targeted markets. The company's portfolio is comprised of High Throughput Distribution(R) facilities -- industrial properties built for speed and located near airports, seaports and ground transportation systems.

AMB's press releases are available on the company website at www.amb.com or by contacting the Investor Relations department at +1-877-285-3111.

This document contains forward-looking statements about future plans such as the company's expectation of growth in its Chicago portfolio through development and acquisition of industrial space which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve numerous risks and uncertainties and should not be relied upon as predictions of future events. The events or circumstances reflected in our forward-looking statements might not occur. We assume no obligation to update or supplement forward-looking statements. For further information on factors that could impact AMB and the statements contained herein, reference should be made to AMB's filings with the Securities and Exchange Commission, including AMB's annual report on Form 10-K for the year ended December 31, 2003.

SOURCE: AMB Property Corporation