AMB Property Corporation (merged with ProLogis 2011)

2011

June - AMB Property Corporation and ProLogis had announced the completion of their merger, forming a combined company named Prologis, Inc., a leading global owner, operator and developer of industrial real estate. The common stock of the combined company would trade under the symbol PLD on the New York Stock Exchange.

"This merger brings together two great organizations to form an even stronger global industrial real estate company," said Hamid R. Moghadam, chairman and co-CEO. "We are excited to move forward with a clear strategy to pursue growth opportunities around the world with our high-quality portfolio of logistics properties, proven private capital business, financial strength and our talented team."

"Prologis is poised for a bright future," said Walter C. Rakowich, co-CEO. "With an unmatched global network, an excellent board of directors and a strong management team, we are primed to deliver on the promise of great products and service for our customers, career opportunities for our people and sector-leading returns for our stockholders."

The transaction would create synergies and be immediately accretive, with the full expected annual gross savings of approximately $80m to be realised by the end of 2012. The company anticipated it would have an improved cost of capital with greater financial flexibility and that its expanded footprint would generate increased revenue opportunities by allowing it to better serve the needs of its customers.

Hamid R. Moghadam, AMB's former CEO, and Walter C. Rakowich, ProLogis' former CEO, will serve as co-CEOs of the combined company through December 31, 2012, at which time Rakowich would retire and Moghadam would become sole CEO.

The company's corporate headquarters would be in San Francisco, and the company's operations headquarters would be in Denver. 

AMB Property Corporation is a developer and owner of industrial real estate, focused on hub and gateway distribution markets.

AMB develops, acquires, owns and operates facilities in distribution markets globally. It serves more than 2,800 customers (air and ocean cargo, freight forwarding, third-party logistics, retail and consumer products) in 14 countries throughout North America, Europe and Asia, with a portfolio totaling 147.7m sq ft (13.7m sq m).

AMB owns airport-related distribution facilities in the United States and also owns and operates on-tarmac and airport-adjacent properties at cargo airports.

The letters "AMB" are comprised of AMB's founding partners' initials: Douglas D. Abbey, Hamid R. Moghadam and T. Robert Burke. The company was founded in 1983.  After nearly 15 years in the investment advisory business, AMB became a publicly traded operating company (structured as a REIT) in November, 1997.