Heavyweight warehouse developers and managers ProLogis and AMP Property have confirmed media reports that they are in talks concerning a potential "merger of equals."

A report by London's International Freighting Weekly cited the pair as saying: "The two companies would combine in an all-stock, at-market transaction, based upon the unaffected trading prices of the two companies' stock prior to media reports of a possible merger."

"There can be no assurance that any discussions regarding a merger will result in a definitive agreement for such a transaction or the timing of such agreement or any transaction."

The focus of AMB Property's business is the major hub and gateway distribution markets in the Americas, Europe and Asia. The company either owns, or has investments in, properties and development projects totalling 14.7 million square metres in 15 countries.

ProLogis, a distribution facility provider, owns and manages 40 million square metres of industrial space located in North America, Europe and Asia, which is leased out to more than 4,400 customers that comprise manufacturers, retailers, transport companies and 3PLs.

The report added that in the first three-quarters of 2010, AMB posted earnings of US$5 million on revenues of $460 million, while ProLogis suffered a net loss of $129 million on revenues of $790 million.