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On November 7th 2000 AFCO concluded negotiations with AMB Property Corporation of San Francisco, California in which AFCO private investors transferred a 95% interest in 20 on-apron air cargo facilities at 8 U.S. airports for $95 million. The facilities represent approximately half of AFCO’s portfolio. AFCO will retain a 5% equity interest in the facilities and continue the day-to-day property management and leasing. The transaction included 896,721 square feet of facilities at Baltimore-Washington, Dallas/Ft. Worth, Jacksonville, Dayton, Kansas City, Los Angeles, Philadelphia and Seattle-Tacoma International Airports.
Frank Chambers, AFCO President and CEO, said “AMB has the financial strength, vision and commitment to continue what we’ve accomplished over the last eight years. In addition to continuing to develop facilities for AFCO and its private investors, through our alliance with AMB, we expect to explore more on-apron opportunities at major airports domestically, and possibly internationally, than we would by ourselves. Through maintaining its ownership and equity interest in the facilities, AFCO retains its leadership in on-airport cargo facility development and operation.”
The transaction makes AMB one of the largest owners of on-apron air cargo facilities in the U.S. The acquisition complements AMB’s 87 million s.f. property portfolio focused on High Throughput DistributionÔ facilities at major transportation hubs across the nation. “AFCO has built the premier portfolio of on-apron air freight buildings in the U.S. and we’re delighted to combine it with our own,” said Hamid Moghadam, chairman and CEO of AMB. “This acquisition fits perfectly with our continued focus on high-speed cargo centers designed for time-sensitive express and heavyweight freight. It strengthens AMB’s national network of airport facilities and our foothold in the worldwide $41 billion air cargo industry, which is growing at 6.5% annually or more than twice the annual rate of the GDP.”
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