Seller New Pacific Realty Acquired Site Just Three Years Ago for $33.5 Million

BEVERLY HILLS, Calif., April 12 /PRNewswire/ -- New Pacific Realty Corp. announced yesterday the sale of 9900 Wilshire to an affiliate of The CPC Group for $500 million. The half-billion-dollar price tag for the 7.95 acre site, which is adjacent to the Beverly Hilton Hotel (host to the annual Golden Globe Awards) and overlooks the prestigious Los Angeles Country Club, is one of the last remaining major development parcels in the City of Beverly Hills, and believed to be largest price ever paid in North America for a development site in the entitlement phase. New Pacific Realty acquired the site just three years ago for $33.5 million.

Designed by Pritzker prize winning architect Richard Meier, the proposed 9900 Wilshire project has been much heralded for its ground breaking design, combining luxury condominium residences with the highest level of environmental sustainability. 9900 Wilshire is the first privately funded project of its kind in the West seeking to qualify for LEED Gold certification, making the transaction notable, not just for its price, but as, perhaps, the most successful "green" development ever in the nation. The 9900 Wilshire project earned New Pacific the U.S. Green Building Council/LA's "Visionary Leadership Award" last year and set another first by hosting the first-ever Golden Globes "green" party hosted by The Environmental Media Association and E! Television, which broadcast the event live during its red carpet award show coverage.

"We are deeply proud of the project and what it's achieved and we have greatly enjoyed the collaboration with Richard Meier and Partners," said David Margulies, CEO of New Pacific. The CPC Group is expected to continue to work with Richard Meier and to move forward with the current plans. The CPC Group has engaged Candy & Candy to oversee development.

"New Pacific has created a vision for 9900 Wilshire that matches our desire for luxury, architectural distinction and the environment. This is the marquee property that marks our entry into the high-end U.S. residential market. We intend to see this vision through and bring Beverly Hills what will truly be the world's most luxurious address," said Nick Candy of Candy & Candy, whose firm is also developing One Hyde Park in London.

"While the land assembly at 9900 Wilshire presented a unique set of complexities, the essence of our investment philosophy is the same, that by making investments that will improve the community, we can benefit as values increase," said Arnold Rosenstein, Chairman of New Pacific.

According to public records, the announcement of the sale by New Pacific eclipses any other single asset sale in recent Southern California history, including the Bel Air Hotel, the Beverly Hills Hotel, Fox Plaza and the Twin Towers in Century City.

"Robinsons May chose New Pacific Realty to work with over any other developer in the world because of their fresh thinking, understanding of what the City of Beverly Hills wants, and what the luxury homeowner demands. Their track record with successful execution with complex projects is second to none as recently witnessed with their turnaround of the former Transamerica Tower downtown," said John Cushman, III, Chairman of Cushman & Wakefield.

Formed in 2002, privately held New Pacific Realty Corp. has grown almost overnight into one of the most successful investment firms in the industry, with a string of major high profile successes. Known for its contrarian investment approach, New Pacific and its principals have acquired and developed more than 5 million square feet of commercial and residential properties. New Pacific acquired the 7.95 acre site just three years ago from The Equitable Life Assurance Society for $33.5 Million, when it was encumbered by a long-term lease to a Robinsons May department store. Previous ownership had plans to build a regional mall on the site, but New Pacific re-conceived the property, replacing a proposed commercial use with luxury residential and utilized environmental "green" sustainable design when few in the real estate industry believed it feasible.

This announcement follows another major recent successful investment by the firm, the repositioning of the Transamerica Center in Downtown Los Angeles and its sale a little more than a year ago. New Pacific, together with partner Magic Johnson's Canyon Johnson Urban Fund, acquired the landmark 1.35 million square foot complex in the heart of LA's downtown, investing in the urban core when few others would. The company upgraded the facilities and transformed a faded Los Angeles landmark into a modern office center, which within less than two years, was 95% leased. The investment in urban renewal had a significant catalyst impact, turning the area into one of hottest markets in the nation, as well as, producing headline grabbing gains -- more than $100 million, in under two years.

For a young firm with an unconventional approach, New Pacific has already garnered a large institutional following. Major firm supporters include Harry Bruni, Managing Director of Lehman Brothers, who provided financing to New Pacific for 9900 Wilshire.

"I have never seen a return like this -- and I don't think anyone else in the industry has either. These guys have enormous vision and they make major contrarian bets, with a track record of executing that is dazzling."

The firm has also received backing from institutions such as Citigroup, iStar Financial, Aegon Insurance, Canyon Johnson Urban Fund (CJUF) and the California State Teachers Employee Retirement System (CaLSTERS).

About 9900 Wilshire -- Beverly Hills

9900 Wilshire Beverly Hills will become the first residential project of its kind in the Western United States to qualify for the U.S. Green Building Council's LEED(TM) (Leadership in Energy and Environmental Design) Gold rating. It is being designed by Pritzker award-winning architect Richard Meier, renowned for the Getty Center in Los Angeles, the Barcelona Museum of Contemporary Art in Barcelona, Spain, and the High Museum of Art in Atlanta, Georgia, among many others. The future home of a veritable Who's Who of green-minded celebrities and industry executives, 9900 Wilshire has already received the 2006 Visionary Leadership Award from the United States Green Building Council-LA; the 2006 Los Angeles Architecture Award and the 2006 Urban Solutions Award. Located at the western entrance to the City of Beverly Hills on the site of the former Robinsons-May department store, 9900 Wilshire will set the standard for future sustainable green luxury residential projects in the world. Beverly Hills-based New Pacific Realty is led by principals David P. Margulies and Arnold S. Rosenstein, who have acquired and developed more than 5 million square feet of prime commercial and residential space in Southern California since 2002, valued in excess of $2 billion. For more information on 9900 Wilshire, please visit www.9900wilshire.com.

About New Pacific Realty

Beverly Hills based, New Pacific Realty is led by principals David P. Margulies and Arnold S. Rosenstein, who have acquired and developed more than 5 million square feet of prime commercial and residential space in Southern California, valued in excess of $2 billion. New Pacific Realty is setting the standard for landmark architecture, award winning landscapes and environmentally sustainable "green" development as demonstrated by 9900 Wilshire in Beverly Hills. For more information on New Pacific Realty or 9900 Wilshire, please visit www.newpacificrealty.com.

Background

New Pacific Realty Corporation is a real estate investment and development company founded on the belief that value can be created by combining financially sound business decisions with an overriding interest in the benefits a project can create for its surrounding community.

New Pacific is focused on value-added investments in a range of multiple asset classes, including office, residential, retail, industrial, and hotel. Headquartered in Beverly Hills, California, the company has in house expertise in acquisitions, development, construction management, property and asset management, dispositions and financing. The firm's Principals are experienced real estate professionals with proven track records in investing and development. Collectively, the team has over 40 years of combined experience, with longstanding relationships in all levels of the real estate and investment communities in the region.

Prior to formation of the firm, the Principals were involved in over 3.0 billion dollars in real estate transactions, including acquisitions, development, financings, workout restructurings and dispositions amounting to more than 100 separate transactions. Margulies was formerly Partner and Head of the West Coast for Apollo Real Estate Advisors, L.P. and Rosenstein was a well known developer in Southern California.

About CPC

The CPC Group is a privately owned Property Trading and Development Company based in Guernsey. We specialize in premium residential projects in a number of international markets and our current projects include some of the most sought after addresses in Monaco, London, Dubai and Qatar, with our focus predominantly in central London. We are passionate about property and the projects that we work on. Our team continually seeks to innovate and challenge how things are done today, in order that we might define how they will be done in the future. We deliver the best and strive to be better, uncompromising in our commitment to the standards and integrity of our company.

About Candy & Candy

Candy & Candy are luxury interior designers, development managers and lifestyle consultants. Our design philosophy is to offer a complete lifestyle, one which is bespoke, luxurious and unique. Our mission is to become the most highly regarded global brand in the super luxury lifestyle sector. Whether it is a spectacular apartment in London or Monaco or the interior of a super luxury yacht, Candy & Candy choose the finest locations internationally and are the exemplary designers of choice for the ultra affluent. Accolades include Best UK Property at the International Property Awards for the past four consecutive years, Best Contemporary Interior Designer Awards and Evening Standard Best Lifestyle Awards.

  Media Contact
  Melissa Spraul, MWW Group -- , Ext. 313
  Kristen Rockwell, MWW Group -- , Ext. 308

Source: New Pacific Realty Corp.

CONTACT: Melissa Spraul, ext. 313, or Kristen Rockwell, ext. 308, both
of MWW Group, , for New Pacific Realty Corp.

Web site: http://www.newpacificrealty.com/