In late March, AMB announced a $335-million joint venture with a subsidiary of GIC Real Estate Pte Ltd., the real estate investment subsidiary of the Government of Singapore Investment Corporation, to own and operate distribution facilities nationwide. At the time, AMB said GIC put up $75 million in cash for the 50-50 partnership, and AMB 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.

In mid-February AMB announced the formation of a partnership with the City and County of San Francisco Employees' Retirement System that will acquire, develop and redevelop distribution facilities nationwide. CCSFERS, a pension fund with $12 billion of assets under management, committed $50 million of equity to be invested in industrial distribution properties. AMB put another $50 million worth of industrial properties, and the joint venture was have debt financings of up to $150 million.

In a filing with the Securities and Exchange Commission, AMB says both deals will bring in acquisition fees equal to 0.9% of gross asset values. As well, in AMB's capacity as general partner for both partnerships, it will receive priority distributions of 7.5% of net operating income for its asset management services, and, if GIC exceeds an internal rate of return of 9%, AMB will receive a promoted interest of 15% in connection with its partnership interest and, if our partner exceeds an internal rate of return of 12%, AMB will receive a promoted interest of 20% in connection with its partnership interest.

In afternoon trading Friday, shares of AMB were off 45 cents to $23.80 on the New York Stock Exchange. The company's stock price has a 52-week range of $21 to $26.06.

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