Exhibit 99.1

PACIFIC REAL ESTATE INVESTMENT TRUST
1010 El Camino Real, Suite 210, Menlo Park , CA 94025    (415) 327-7147
                                                         (415) 327-8516

January 15, 1997

Dear Shareholder:

We are pleased to announce that Pacific Real Estate Investment Trust (PREIT) has
entered into a definitive merger agreement with Pan Pacific Development (U.S.)
Inc. ("Pan Pacific"), a wholly owned subsidiary of Revenue Properties Company
Limited ("RPC").  RPC is a Toronto-based corporation engaged in various segments
of the real estate industry, primarily those relating to shopping center and
residential income properties in Canada and the United States.

Pursuant to the agreement, Pan Pacific will cause the merger of two of its
subsidiaries with subsidiaries of a Maryland corporation ("PAC REIT"), which
will be the surviving entity, and PREIT will contribute its assets to a PAC REIT
subsidiary.  PAC REIT's retail portfolio will then consist of five shopping
centers, containing approximately 500,000 square feet.  On closing, PAC REIT
will issue approximately 57% of its outstanding shares to Pan Pacific and
approximately 43% of its shares to PREIT shareholders.

Closing is expected to occur during the second quarter of 1997.  After closing,
PAC REIT intends to apply for a listing on NASDAQ or on a United States stock
exchange and operate as a U.S. REIT.  It intends to expand in the San Francisco
region and northern California.

It is important to note, however, that consummation of the merger remains
subject to three major contingencies:

    1.   Successful resolution of the toxic issue at the El Portal Shopping
         Center in San Pablo;

    2.   An acceptable extension of the ground lease at King's Court Shopping
         Center in Los Gatos; and

    3.   Approval of the merger by the shareholders of PREIT after the above
contingencies are met.

We will provide more detailed information concerning the merger in the Proxy
Statement that we will prepare in connection with the Special Meeting of
Stockholders that will be scheduled to consider the proposed merger.  We expect
that the Proxy Statement will be mailed to you in approximately sixty days.

Sincerely,

Pacific Real Estate Investment Trust

/s/ Russell Collier                         /s/ Wilcox Patterson
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Russell Collier                             Wilcox Patterson
Advisor                                     President of the Board of Trustees