Market Overview

Pacifica Capital and PAG's Hotel Project Opens in Osaka

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Pacifica Capital K.K. and PAG Real Estate are pleased to announce the
opening of its hotel project, Oakwood Hotel & Serviced Apartments
Shin-Osaka, which began operations on August 1. The 185 room property
offers large, modern rooms with kitchenettes for short- or long-term
stay as well as more traditional hotel-type rooms.

Pacifica's role on the project ranged from identifying the opportunity
to buy a large, well-built office building to operator selection,
construction supervision and closely working with PAG as the equity
investor to negotiate the management contract, and finalize the hotel
design.

PAG's role on the project included deal structuring and arranging
financing for the project.

Subsequent to opening, Pacifica will continue its asset management role,
working closely with PAG and Oakwood to maximize the property
performance.

"The opening of this property solidifies Pacifica's position as the
leading developer of internationally-branded, limited service hotels in
Japan," said Seth Sulkin, President & CEO of Pacifica Capital.
"Following the successful opening in November 2017 of Moxy Tokyo, also
originally an office building, we have developed unique expertise in
conversion to hotels."

Pacifica's future pipeline of projects includes new construction as well
as renovation of existing hotels. "Although inbound tourist arrivals
continue to grow strongly, there is significant new supply of
domestic-branded budget hotels," Sulkin said. "We have close
relationships with hotel companies around the world and will select the
most appropriate brand to differentiate our properties from the
competition. Pacifica has set up a new unit to begin franchising
international brands, but we will continue to develop managed properties
as appropriate."

"We're pleased to partner with Pacifica on the Oakwood Hotel & Serviced
Apartments Shin-Osaka," said Phi Q. Le, Representative Director and CEO
of PAG Real Estate. "As one of the largest real estate investors in
Japan, PAG has a strong track record of identifying innovative
opportunities and forging strong partnerships. We believe that
Pacifica's experience as a developer and asset manager and PAG's
expertise in real estate investment, project financing and deal
structuring are a perfect fit for this project."

About Pacifica Capital K.K.: For more than 20 years, Tokyo-based
Pacifica has been a leading developer of commercial properties in Japan,
including retail, mixed-use, solar power and now focusing on hotels.

About PAG Real Estate: PAG Real Estate is the real estate investment arm
of PAG, one of Asia's largest independent alternative investment firms
with more than $20 billion in funds under management. Formerly known as
Secured Capital, PAG Real Estate manages a series of opportunistic and
core-plus funds investing in Japan, China, and other developed markets
throughout Asia. PAG Real Estate has invested more than $27 billion
across more than 6,800 properties since 1997.

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