Real Estate Investment Strategies

Investment roadmap ASSET RESIDENTIAL COMMERCIAL SPECIALTY FINANCE ILLUSTRATIVE STRATEGIES • . • • Buy and warehouse newly originated non-conforming loans with exit optionality through securitization Acquire interests in non-bank mortgage originations companies Purchase legacy loans from banks, government entities and other funds, retain exit optionality through securitization Provide alternative debt financing to CMBS or banks on transitional or secondary assets Structure NPL/SPL participations to address the EUR400bn+ of sub-performing European loans Pursue core versus non-core arbitrages through development or portfolio acquisitions Buy or enter into forward flow agreements with originators of consumer and commercial finance loans and other financial assets Provide warehouse and term financing to specialty finance companies Acquire equity and equity-like interests in privately-held specialty finance companies ILLUSTRATIVE INVESTMENTS • Forward flow arrangements to acquire newly originated U.S. non-QM loans Control investment in non-bank mortgage originator Acquisition of UK second lien mortgage pools from institutions exiting businesses now considered "non core" • Mezzanine loan on a mixed use development project Wholesale-to-retail arbitrages in Bay Area office and UK retail portfolios Controlling stake in a European investment development company • • Preferred equity investment in a diversified specialty finance company in Ireland Joint venture with specialty finance company to originate trade receivables in Spain FINANCIALS As of 31 December 2016 • Provide regulatory relief to banks through bespoke structured transactions • PE investment in a specialty finance company engaged in regulatory capital relief transactions Acquire select bank capital holdings • Senior secured debt from a bad bank institution Note: the above represent potential Fund transactions, based on current market conditions, the Fund investment team's experience and investments made or evaluated by prior PIMCO advised investment funds. However, no assurance can be given that the Fund will actually make these or comparable investments. In addition, the Fund has a broad and flexible investment mandate, and is likely to make investments that are materially different from those described above. Refer to Appendix for additional investment strategy and risk information. PIMCO 21 21

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