AMB Closes $422M Brazil Fund

The fund aims to develop, acquire, own, operate, manage and dispose of logistics properties within Sao Paulo and Rio de Janeiro.

December 27, 2010
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user Rodrigo_Soldon

AMB Corp. has formed the Brazil Logistics Partners Fund I L.P., which aims to develop, acquire, own, operate, manage and dispose of logistics properties within Sao Paulo and Rio de Janeiro.

An unnamed major university endowment serves as the firm’s partner in the fund, with an initial investment of $211 million. Its overall equity commitment will be $422 million, including AMB’s 50 percent co-investment.

At closing, the fund acquired 639,000 square feet of development properties, of which more than 88 percent is pre-leased, along with 205 acres in Sao Paulo and Rio de Janeiro. That acreage has an estimated buildout potential of 3.6 million square feet.

According to AMB Americas president Eugene Reilly, Brazil’s economic growth is driving the expansion of its consumer class, and in turn, the need to distribute greater amounts of product. This means, he said, that the area’s current supply of logistics facilities does not meet the needs of the businesses serving the approximately 33 million inhabitants in those regions – and that AMB is developing Class A distribution facilities to meet that need.

AMB Europe & Asia private capital president Guy Jacquier added that year-to-date the firm has added more than $630 million in new third-party equity to its private capital vehicles in the U.S., Latin America and Europe.