Pan Pacific Retail Properties, Inc. Acquires Two Northern California Shopping Centers for $19 Million

Business Wire, June 2, 1998

SAN DIEGO, Calif.--(BUSINESS WIRE)--June 2, 1998 - Pan Pacific Retail Properties, Inc. (NYSE:PNP) today announced the acquisition of two neighborhood centers in Northern California for $19 million.

"The acquisitions of these two neighborhood centers further enhance our Northern California presence," said Stuart A. Tanz, President and Chief Executive Officer. "We now own and manage 11 shopping centers in Northern California, encompassing more than 1.4 million square feet. Furthermore, with respect to our 1998 acquisition activity, we are comfortably ahead of plan, having acquired 12 properties for $117 million, encompassing more than 1.5 million square feet."

Fashion Faire Place

Fashion Faire Place is a 95,000 square foot neighborhood center located in San Leandro, in the San Francisco East Bay area. The center, which is 15 miles east of San Francisco, is situated on Fairmont Drive and Hesperian Boulevard just north of Highway 880. Fashion Faire Place is 88% leased and anchored by Ross Stores, Michael's Arts and Crafts and Pier 1 Imports.

Westwood Village Shopping Center

Westwood Village Shopping Center is a 102,000 square foot grocery and drug store anchored neighborhood center located off the Interstate 5 business loop on Highway 273, the main north/south thoroughfare in Redding, California. The center is 85% leased and anchored by Holiday Markets and Rite Aid.

Tanz continued, "Both these centers are well-located and in demographically strong markets in Northern California. In addition, we believe these centers offer excellent opportunities for NOI increases through our capital enhancement and remerchandising programs."

Pan Pacific Retail Properties, Inc. is a real estate investment trust (REIT) traded on the New York Stock Exchange under the symbol PNP. The company is a fully integrated, self-managed REIT that acquires, renovates, develops and manages a portfolio of mainly community and neighborhood shopping centers primarily located in four key western markets: Northern California, Southern California, the Pacific Northwest and Las Vegas, Nevada. The company owns 44 centers, totaling more than 6.8 million square feet of gross leasable area, of which 5.8 million square feet is owned by the company, with the balance owned by certain anchor stores. The company is headquartered in Vista, California, with regional offices in: Sacramento, California; Chino, California; Kent, Washington; and Las Vegas, Nevada. Additional information about Pan Pacific can be obtained on the internet at http://www.pprp.com.

Note: Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although management of Pan Pacific believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include market valuations of its stock, financial performance and operations of its shopping centers, real estate conditions, execution of shopping center development programs, successful completion of renovations, completion of pending acquisitions including the completion of customary due diligence and closing conditions, changes in the availability of additional acquisitions, changes in local or national economic conditions, and other risks detailed from time to time in Pan Pacific's SEC reports, including the Annual Report on form 10-K for the year ended Dec. 31, 1997. -0-

For investor information on Pan Pacific Retail Properties via facsimile at no cost, simply call 800/PRO-INFO and dial client code PNP.

    CONTACT: Pan Pacific Retail Properties
         Carol Merriman (Investor Relations), 760/727-1002

              or
              The Financial Relations Board
         Stephanie Mishra (Analyst Contact), 415/986-1591

         Rebecca Bergman/Dan Saks (General Information), 310/442-0599


         Michaelle Burstin (Media Contact), 310/442-0599