AMB Completes Disposition of 12 Shopping Centers for $246 Million; AMB is reinvesting funds in distribution centers at or near large U.S. airports and transportation hubs.

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 4, 1999--

More than $453 million from dispositions generated to date

AMB Property Corporation (NYSE:AMB) today announced the disposition of 12 shopping centers in major U.S. cities for approximately $246 million, as part of its strategy to redeploy capital into new "high throughput" distribution centers near large airports and major transportation centers nationwide.

This disposition to BBP Retail, LLC, a joint venture between San Diego-based Burnham Pacific (NYSE:BPP) and the California Public Employees' Retirement System, covering more than two million square feet, represents AMB's second shopping center disposition in 1999 totaling 21 centers for $453 million.

"Redeploying capital from shopping centers to high throughput distribution properties is a strategy that we believe will deliver increased long-term returns," said AMB President and CEO Hamid Moghadam. "It expands our position in the industrial property market, serving high-growth third party logistics providers and expedited air-freight and e-commerce companies."

W. Blake Baird, AMB's Chief Investment Officer, said "Proceeds from this transaction will be used to pay off approximately $30 million of secured debt and to reduce unsecured borrowings by approximately $100 million. In addition, with the acquisitions we have in our pipeline, we are confident that we can redeploy approximately $100 million of remaining capital from this transaction efficiently."

The 12 centers sold today are located in seven major U.S. metropolitan areas:

-- Applewood Village Shopping Center, Denver, CO, 353,000

square feet.

-- Arapahoe Village Shopping Center, Denver, CO, 159,000 square

feet.

-- Brentwood Commons, Chicago, IL, 102,000 square feet.

-- Civic Center Plaza, Chicago, IL, 264,000 square feet.

-- Five Points Shopping Center, Santa Barbara, CA 144,000

square feet.

-- Pleasant Hill Shopping Center, San Francisco, CA, 234,000

square feet.

-- First Colony Market, Houston, TX, 112,000 square feet.

-- Westheimer Plaza, Houston, TX, 136,000 square feet.

-- Woodway Collection, Houston, TX, 111,000 square feet.

-- Riverview Plaza Shopping Center, Chicago, IL, 139,000 square

feet.

-- Rockford Road Plaza, Minneapolis, MN, 206,000 square feet.

-- Southwest Pavilion, Reno, NV, 77,000 square feet.

On June 15, 1999, in a separate transaction, AMB disposed of nine centers to BPP Retail, LLC for $207 million. AMB currently expects to dispose of four additional shopping centers to BPP Retail, LLC for $107 million on December 1, 1999.

AMB Property Corporation is one of the leading owners and operators of industrial real estate nationwide. As of June 30, 1999, AMB owned and managed 67.6 million square feet and 706 buildings in 28 U.S. metropolitan markets, including 3.2 million square feet and 40 industrial buildings owned with institutional investors through its subsidiary AMB Investment Management. In addition, AMB owns a majority limited partnership interest in an unconsolidated joint venture that owns 36 buildings containing 4.0 million square feet in Chicago and AMB Investment Management manages 4.3 million square feet on behalf of institutional investors. At June 30, 1999 the Company had 91.1 million common shares and units outstanding. AMB - A tradition of nontraditional thinking.

This press release contains forward-looking statements about the closing of the BPP Retail transactions, the anticipated net proceeds, the sale price and the number of properties subject to transactions, business strategy and future plans, 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. In particular, a number of factors could cause AMB's actual results to differ materially from those anticipated, including, among other things, defaults on or non-renewal of leases by tenants, increased interest rates and operating costs, AMB's failure to obtain necessary outside financing, difficulties in identifying properties to acquire and in effecting acquisitions, AMB's failure to successfully integrate acquired properties and operations, AMB's failure to dispose of properties it has contracted to sell or to timely reinvest proceeds from any such dispositions, risks and uncertainties affecting property development and construction (including construction delays, cost overruns, AMB's inability to obtain necessary permits and public opposition to these activities), AMB's failure to qualify and maintain our status as a real estate investment trust under the Internal Revenue Code, environmental uncertainties, risks related to natural disasters, financial market fluctuations, changes in real estate and zoning laws and increases in real property tax rates. AMB's success also depends upon economic trends generally, including interest rates, income tax laws, governmental regulation, legislation and population changes. For further information on these and other 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, 1998.