M&G : continues temporary suspension of Property Portfolio

M&G CONTINUES TEMPORARY SUSPENSION OF PROPERTY PORTFOLIO

• • Cash balance increases to 14.6%

• • Next planned update on temporary suspension due 29 December

LONDON, 1 December 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.

We continue to balance the objective of raising cash levels with the need to protect the interests of all our investors. Our ongoing, targeted sales programme is intended to preserve the portfolio's integrity and long term prospects. The Fund currently has £2.1 billion assets under management with a cash balance of 14.6%*.

Since our last update, four assets have been sold for £110.8 million and a further 10 at a value of £174.2 million are either under offer or have exchanged. Assuming all progress to completion, the cash position will rise to 22.8%. There is no guarantee that these deals will complete.

Despite the many challenges occupiers faced this year, the fund continues to deliver an attractive distribution yield. A key driver of this is the relatively low vacancy rate (7.6%, as at end October). Engaging with tenants helps manage income risk and, as a major commercial property owner, M&G is proactively working with tenants to find solutions that help support businesses, whilst also safeguarding the interests of the many savers and pensioners whose money is invested in these buildings. Rent collection for all quarters in 2020 has been more than 81%, which results in a distribution yield of 5.1%.

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.

Fund activity update

• • Cumulative total of asset sales since suspension: £308.4 million

• • Assets contractually exchanged or under offer to sell: £174.2 million.

*As at the end of November 2020

ENDS

About 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 Partner s 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.

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

M&G Press Office:

Rebecca Grundy	Irene Chambers
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Issued by M&GSecurities 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