M&G continues temporary suspension of property portfolio

Next planned update on temporary suspension due 6 October

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 Standing Independent Valuer – Knight Frank – has now lifted Material Uncertainty Clauses (MUCs) from all sectors with the exception of Retail, Leisure and Hospitality, where it deems there is still insufficient transactional evidence on which to base valuations.

As of 28 August, £1.1 billion (54% of the Fund’s net asset value) of the Fund’s direct property assets are no longer subject to a statement of material uncertainty, rising to £1.4 billion (64.7%) if cash, REITs and indirect holdings are taken into account.

After the MUCs for the remaining sectors are lifted, our focus will remain on an orderly sale of properties so we can pay any investors who wish to sell their holdings once the Funds have reopened. Whilst our continued priority is to restore cash levels, we are also balancing our intention to reopen as soon as possible with our responsibility to protect the interests of our long term customers.

Since our last update, 78% of rent for Q2 has been collected and one asset has been sold for £7.3 million. Deals are still taking much longer to conclude due to heightened levels of due diligence and logistical difficulties on behalf of those transacting. The Fund’s current size is £2.1 billion with a cash balance of 8.2% and £129.9 million of assets are in solicitors hands for sale. There is no guarantee that these deals will complete.^*

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 6 October, or earlier if needed.

Fund activity update

Cumulative total of asset sales since suspension: £159.2 million
Assets contractually exchanged or under offer to sell: £129.9 million

*As at the end of August 2020, the cash held by the Fund was 8.2%. £113.5 million of assets are under offer. There is no guarantee transactions will complete.

Download a PDF of the release

M&G Press Office

Marta Giovinazzo

M&G Media Relations

+39 340 9970454

[email protected]

Notes to editors

OpenAbout M&G Investments

M&G plc is a leading savings and investments 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. In March 2018, Prudential plc announced its intention to demerge the company with a premium listing on the London Stock Exchange. The demerger became effective on 21 October 2019, when M&G’s shares were admitted to trading on the London Stock Exchange. As an independent company, M&G plc has a single corporate identity and continues with two customer-facing brands; Prudential for savings and insurance customers in the UK and Europe and for asset management in South Africa and M&G Investments for asset management clients globally.

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. 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 £33.5 billion property arm (as at 30 June 2019 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.

For more information, please visit: https://global.mandg.com/

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

M&G Securities Limited: Terms and Conditions for downloading Photographic material

1. Introduction

Welcome to the myM&G campaign landing page (the "Website"). The Website is operated by M&G Securities Limited (“M&G”, “we”, “us” or “our”). By accessing or using the Website and downloading any photographs, images, graphics, or any other visual content available for download or stored on the Website or M&G’s content management system (the “Photos”), you (“You”) represent to have read, understand and agree to comply with and be bound by these Terms and Conditions (the "Terms"), forming a binding agreement between You and us. If You do not agree to these Terms, please do not use the Website.

2. Intellectual Property Rights

All Photos available on the Website are the property of M&G or its licensors and are protected by copyright, trade mark, and other intellectual property laws. Unauthorised use of any Photos or content is strictly prohibited.

3. Permitted Use

Subject to your compliance with these Terms, M&G grants You a limited, non-exclusive, non-transferable, and revocable licence to download and use the Photos available on the Website for any purpose, except for purposes which are defamatory, derogatory, related to pornography, otherwise indecent, or involve the creation or dissemination of AI-generated “deep fake images”. Photos can only be downloaded from the hidden URL provided in the press release.

4. Additional prohibitions

You agree that You will not:

(a) modify, alter, or create derivative works from the Photos;

(b) use the Photos in any manner that infringes on the intellectual property rights of M&G or any third party;

(d) share the hidden URL with any unauthorised third party.

5. Attribution

When using the Photos, You must provide appropriate credit to M&G by including a link to our Website or mentioning the source in a manner that is reasonable and customary.

6. Disclaimer of Warranties

The Photos on the Website are provided “as is” without any warranties of any kind, either express or implied. M&G does not warrant that the Photos will be error-free or that your access to the Photos will be uninterrupted.

7. Limitation of Liability

In no event shall M&G be liable for any direct, indirect, incidental, special, or consequential damages arising out of or in connection with the use of the Photos, even if M&G has been advised of the possibility of such damages. As the Photos are provided free of charge, M&G's total liability to You for any damages, losses, and causes of action shall not exceed the amount paid by You for accessing the Photos, which is nil.

8. Indemnification

You agree to indemnify and hold harmless M&G, its affiliates, and their respective officers, directors, employees, and agents from and against any claims, liabilities, damages, losses, and expenses arising out of or in any way connected with your use of the Photos.

9. Changes to these Terms

M&G reserves the right to modify these Terms at any time. Any changes will be effective immediately upon posting on the Website. If a "click to accept" mechanism is not implemented, You will be notified of changes to the terms via email or a prominent notice displayed on the Website. Your continued use of the Website after any changes constitutes your acceptance of the new Terms.

10. Governing Law

These Terms shall be governed by and construed in accordance with the laws of England and Wales, without regard to its conflict of law principles. Any disputes arising out of or in connection with these Terms, including any questions regarding their existence, validity, or termination, shall be subject to the exclusive jurisdiction of the courts of England and Wales.

11. Contact Information

If you have any questions or concerns about these Terms, please contact us at [email protected].

2025 apprenticeships open now

Reframing later life