M&G reduces the fair value adjustment to the M&G Property Portfolio

31 August 2016

London - M&G Investments (M&G) today announces it is reducing the fair value adjustment (FVA) to the M&G Property Portfolio.

This is a reflection of emerging evidence that market transactions and tenant behaviour are stabilising and becoming more supportive of the valuation of property assets. Knight Frank has the ability to reverse the FVA in whole or in part if these circumstances change.

In consultation with Knight Frank, the Fund’s independent valuer, the decision has been taken to lower the existing £150m FVA to £75m.

To balance the interests of all the Fund’s shareholders, M&G first applied a £200m FVA on 1 July 2016  at a time of heightened market uncertainty following the outcome of EU referendum. It was lowered on 20 July 2016 to £150 million.

The FVA and suspension of the Fund continue to be reviewed regularly by M&G and the Depositary.