AMB Property Corporation Renews $500 Million Unsecured Credit Facility.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--May 25, 2000

AMB Property Corporation (NYSE: AMB), today announced that is has obtained a new $500 million unsecured revolving credit facility replacing its previous $500 million credit facility that was to mature in November 2000.

The new three-year facility, maturing May 2003 with a one-year extension option, was syndicated to a group of 17 U.S. and international banks.

J.P. Morgan Securities Inc. and Banc of America Securities LLC acted as Joint-Lead Arrangers and Joint-Bookmanagers. Morgan Guaranty Trust Company of New York is Administrative Agent, Bank of America, N.A. is Syndication Agent and The Chase Manhattan Bank is Document Agent.

"We are very pleased to have been able to renew our credit facility early so that we may focus our efforts on our core competencies of owning and operating High Throughput Distribution(TM) industrial real estate," stated W. Blake Baird, President of AMB Property Corporation. "We are happy with the high quality bank group involved in our facility and the role the facility plays in our unrelenting focus on financial flexibility."

The credit facility matures in May 2003 with a one-year extension option and a $200 million expansion option. The facility also has a $200 million competitive bid option. The rate on the borrowings will be LIBOR plus 75 basis points plus a 15 basis point annual facility fee.

Mike Coke, Chief Financial Officer of AMB Property Corporation, stated, "There was a healthy response from the credit markets on our early renewal efforts. The credit facility was over-subscribed and 75% of the banks who participated in our previous facility are participants in our new facility. Additionally, we expanded our bank group from twelve participants to seventeen including eight new banks. We are delighted that we were not only able to renew our line six months early, but were able to maintain pricing and borrowing capacity."

The 17 participants are Morgan Guaranty Trust Company of New York; Bank of America, N.A.; The Chase Manhattan Bank; Bank One, N.A.; Commerzbank Aktiengesellschaft; PNC Bank, National Association; Wachovia Bank, N.A.; Bankers Trust Company; Dresdner Bank AG; Union Bank of California, N.A.; First Union Bank; AmSouth Bank; The Industrial Bank of Japan, Limited; Citizens Bank of Massachusetts; Chevy Chase Bank, FSB; The Northern Trust Company; and Chang Hwa Commercial Bank, Ltd.

In addition to the common stock dividend declaration yesterday, the Board of Directors also declared a dividend for the three month period ending July 14, 2000 of $0.53125 per share of its 8.5% Series A Cumulative Redeemable Preferred Stock (NYSE: AMB Pf A). The dividend is payable on July 17, 2000, to stockholders of record as of July 5, 2000.

AMB Property Corporation is one of the leading owners and operators of industrial real estate nationwide. As of March 31, 2000, AMB owned and managed and had developments totaling 80.9 million square feet in 26 U.S. metropolitan markets, including 4.8 million square feet and 88 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 4.4 million square feet on behalf of institutional investors. At March 31, 2000 the Company had 89.8 million common shares and units outstanding. AMB -- A tradition of nontraditional thinking(TM).

This press release contains forward-looking statements about dividend payments, 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 AMB's 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 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 AMB's 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 quarterly report on Form 10-Q for the quarter ended March 31, 2000.