M&G continues temporary suspension of Property Portfolio

Fund’s cash level continues to increase
Next planned update on temporary suspension due 3 November

LONDON, 6 October 2020: The Authorised Corporate Director of the M&G Property Portfolio (“the Fund”) has decided, with the agreement of the Fund’s Depositary, it can best protect the interests of all of its investors by continuing the temporary suspension in dealing in its shares.

The Fund’s current size is £2.1 billion with a cash balance of 10%. We continue to balance the objective of raising the cash level within the Fund with the need to protect the interests of our long term investors.

Since our last update, 82% of rent for Q3 has been collected and five assets have been sold for £38.4 million. A further £234.5 million of asset sales are currently being progressed, of which 59% are in the retail sector. The time taken to dispose of an individual asset typically remains elongated owing to current market conditions, including the practical challenges associated with buyers undertaking due diligence. There is no guarantee that these deals will complete.^*

On 9 September, the Fund’s Standing Independent Valuer – Knight Frank – lifted Material Uncertainty Clauses (MUCs) from all sectors. As a result, none of the Fund’s direct property assets are subject to statements of material uncertainty.

M&G continues to waive 30% of the Fund’s annual charge during the temporary suspension in recognition of the inconvenience caused to our clients and customers. In all other respects, the Fund remains actively managed and reported on during the temporary suspension and continues to make income payments.

The ACD and the Depositary reviews the temporary suspension on a 28-day cycle and our next update will be on 3 November or earlier if needed.

Fund activity update

Cumulative total of asset sales since suspension: £197.6 million
Assets contractually exchanged or under offer to sell: £239.5 million

^*As at the end of September 2020, the cash held by the Fund was 10%. £234.5 million of assets are under offer. There is no guarantee transactions will complete.

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M&G Press Office

Rebecca Talbot

Media Relations

+44 (0)782 782 0428

[email protected]

Irene Chambers

Media Relations

+44 (0)782 569 6815

[email protected]

Notes to editors

OpenAbout M&G Investments

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £339 billion of assets under management (as at 30 June 2020). M&G plc has over 5 million customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

Its £33.7 billion property arm (as at 30 June 2020 including cash), M&G Real Estate, is a leading financial solutions provider for global real estate investors, has a sector leading approach to responsible property management and is committed to continuously improving the sustainability performance of its funds.

OpenDisclaimer

Issued by M&G Securities Limited which is authorised and regulated by the Financial Conduct Authority and provides investment products. The company’s registered office is 10 Fenchurch Avenue, London EC3M 5AG. Registered in England and Wales. Registered number 90776

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