Arizona Land to Become Pacific Office Properties and to Acquire Honolulu, San Diego and Phoenix Office Portfolio

  
    
  
  
    
      Arizona Land Income Corporation (AMEX: AZL), a real estate investment 
      trust, announced today that its shareholders have approved AZL’s 
      acquisition of The Shidler Group’s West Coast 
      office building portfolio, its reincorporation in Maryland under the 
      name Pacific Office Properties Trust, Inc. (“Pacific 
      Office Properties”) and all related matters.
    
    
      Pacific Office Properties will adopt The Shidler Group’s 
      institutional joint-venture initiatives, which focus on acquiring, 
      owning and operating value-added and core commercial real estate in 
      partnership with institutional co-investors.
    
    
      “We appreciate the shareholders’ 
      approval and demonstration of confidence in the impending transformation 
      of AZL to Pacific Office Properties,” said 
      Jay Shidler, founder of The Shidler Group and slated Chairman of the 
      Board of Pacific Office Properties. “We 
      believe Pacific Office Properties is the first of a new generation of 
      REITs, which will use their highly efficient and transparent operating 
      platforms to acquire commercial properties in partnership with 
      institutional co-investors.”
    
    
      Dallas Lucas, slated CEO of Pacific Office Properties, stated, “Going 
      forward, the Company’s co-investment strategy 
      will provide access to private capital in addition to the public capital 
      markets generally available to REITS and should generate venture-related 
      preferential returns.”
    
    
      “We greatly look forward to the closing of 
      the transactions and the launch of operations as Pacific Office 
      Properties.” said Lucas
    
    
      Consummation of the transactions is subject to customary closing 
      conditions. Closing of the transaction is anticipated to take place 
      promptly following the satisfaction or waiver of these conditions.
    
    
      About Pacific Office Properties Trust
    
    
      Pacific Office Properties Trust will be a real estate investment trust, 
      which will acquire, own, and operate office properties in the western 
      U.S., focusing initially on the four high-growth markets of Honolulu, 
      San Diego, Los Angeles, and Phoenix.
    
    
      The Company will focus on acquiring, with institutional co-investors, 
      value-added and core office buildings whose potential can be maximized 
      through improvements, repositioning, and superior leasing and 
      management. The Company will continue The Shidler Group’s 
      highly successful institutional joint-venture operations, which focus on 
      acquiring opportunistic and value-added commercial real estate in 
      partnership with institutional co-investors.
    
    
      About Arizona Land Income Corporation
    
    
      Arizona Land Income Corporation is a real estate investment trust 
      headquartered in Phoenix, Arizona. It is externally advised by ALI 
      Advisors, Inc.
    
    
      About The Shidler Group
    
    
      The Shidler Group (www.shidler.com) 
      is a private long-term investor in commercial real estate. Over the past 
      30 years, through its private and public affiliates, it has acquired, 
      owned and managed more than 2,000 properties containing over 150 million 
      square feet of leaseable area. Currently, The Shidler Group, through its 
      affiliates, owns and manages commercial properties in Honolulu, Los 
      Angeles, San Diego and Phoenix, and maintains offices in Honolulu, San 
      Diego, Phoenix and New York. The Shidler Group has founded three 
      publicly traded real estate investment trusts – 
      Corporate Office Properties Trust (NYSE: OFC), First Industrial Realty 
      Trust (NYSE: FR), and Tri Net Corporate Realty Trust (formerly, NYSE: 
      TRI, now part of iStar Financial (NYSE: SFI)). The Shidler Group also 
      founded Primus Guaranty, Ltd. (NYSE: PRS), a Bermuda-based holding 
      company whose primary subsidiary, Primus Financial Products, is a 
      AAA/Aaa rated provider of credit default protection.
    
    
      Credit Suisse Securities (USA) LLC is acting as financial advisor to The 
      Shidler Group, and Peacock, Hislop, Staley, & Given, Inc. is acting as 
      financial advisor to AZL. Barack Ferrazzano Kirschbaum & Nagelberg LLP 
      is serving as legal advisor to The Shidler Group, and Squire, Sanders & 
      Dempsey L.L.P. is serving as legal advisor to AZL.
    
    
      Certain Information About Forward Looking 
      Statements
    
    
      Statements contained in this release except for historical information 
      are forward-looking statements that are based on current expectations 
      and involve risks and uncertainties. Without limiting the generality of 
      the foregoing, words such as “should,” 
      “may,” “will,” 
      “expect,” “believe,” 
      “anticipate,” “intend,” 
      “could,” “estimate,” 
      or “continue,” 
      or the negative or other variations thereof or comparable terminology, 
      are intended to identify forward-looking statements. The risks and 
      uncertainties inherent in such statements may cause actual future events 
      or results to differ materially and adversely from those described in 
      the forward-looking statements. Specifically, there can be no assurance 
      that the subject transactions will be consummated. Important factors 
      that may cause a difference between projected and actual results for AZL 
      are discussed in AZL’s filings from time to 
      time with the SEC, including but not limited to AZL’s 
      annual reports on Form 10-KSB, subsequent quarterly filings on Form 
      10-QSB, current reports on Form 8-K and recently filed Proxy Statement 
      on Schedule 14A. AZL and The Shidler Group disclaim any obligation to 
      revise or update any forward-looking statements that may be made from 
      time to time by any of them or on their behalf.