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18 March 2022

M&G boosts allocation to Japanese multi-family housing with US$424 million acquisition

2022
  • Continued investor demand for the sector's resilient rental performance and high occupancy rates, underpinned by
    ongoing migration into major Japanese cities

  • Increased residential exposure provides diversification benefits and portfolio resilience

SINGAPORE/HONG KONG, 18 March 2022: M&G Real Estate – part of M&G plc’s £72 billion (US$94.4 billion1)
private assets and alternatives division - has purchased a portfolio of 30 residential assets in Japan’s gateway cities
of Tokyo, Osaka and Nagoya for ¥49.2 billion (US$424.3 million2). Made on behalf of the M&G Asia Property Fund

the deal substantially increases the fund’s exposure to one of Asia Pacific's key multifamily markets, taking assets
under management in the sector to ¥109.3 billion (US$942.6 million2).

The 1,575 apartments are all within walking distance to transport and more than 90% occupied, reflecting the growing
demand for well-located apartments in key cities. Such accommodation is highly sought after by young adults who
continue to migrate from smaller cities into major metropolitan areas for education, job opportunities, and the
convenience of amenities and infrastructure. Whilst Japan's population is ageing, cities such as Tokyo and Nagoya
in particular are still projected to see population growth.

M&G Real Estate was an early investor in Japan’s residential market in 2014 and since then the multi-family sector
has matured and is a strongly favoured investment sector for foreign institutions seeking to allocate capital into Asia
Pacific. Underpinned by continued urbanisation, the defensive nature of the sector has remained resilient over time
– not only since the outbreak of COVID-19, but through past economic downturns such as the Global Financial Crisis
– demonstrating stable occupancy rates and income stability.

Explaining the benefits of the deal for investors, Richard van den Berg, manager of M&G Asia Property Fund, says:
"This combined acquisition will bolster the Fund's resilience particularly from an income stability perspective. Our
increased allocation to the residential sector also provides diversification benefits as residential assets are often
regarded as counter-cyclical investments relative to the commercial office and retail sectors. Japanese multi-family
residential has proven itself through various economic shocks, highlighting the ability of the asset class to enhance
risk-adjusted returns for core investors."

1 - Exchange rate: £100 - US$131.10245249 as at 10 March 2022)
2 - Exchange rate: ¥100 = US$0.862370 as at 10 March 2022)

Media enquiries

Michael Luk

FTI Consulting
Hong Kong

Notes to editors

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 £370 billion of assets under management (as at 31 December 2021). 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.
M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and
administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by
2030.

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

This information is intended for journalists and media professionals only. It should not be relied on by private investors or advisers.

This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of
assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a
recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.

Issued by M&G International Investments S.A. Registered Office: 16, Boulevard Royal, L-2449, Luxembourg.

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

M&G plc は、イングランド及びウェールズで設立・登録。本社登録地は10 Fenchurch Avenue, London EC3M 5AG。登録番号11444019。M&G plcは持ち株会社で、その子会社の一部はPRA(健全性監督機構)及びFCA(金融行為規制機構) に認可され、それらの規制対象となっています。

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M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.