Prudential Mortgage Capital Closes First Commercial Real Estate Loan in Japan

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Prudential Mortgage Capital Company has closed a $49 million (¥4.6 billion) debt financing secured by a group of five high-quality logistics buildings primarily located in Tokyo for Mitsubishi's Diamond Realty Management (DREAM) Logistics Fund. The financing marks the company's first commercial real estate debt transaction in Japan since it received approval to offer commercial real estate loans from the Tokyo Metropolitan Government in late 2009. Prudential Mortgage Capital is the commercial mortgage lending business of Prudential Financial, Inc. (NYSE: PRU).

Prudential Mortgage Capital Company has closed a $49 million (¥4.6 billion) debt financing secured by a group of five high-quality logistics buildings primarily located in Tokyo for Mitsubishi's Diamond Realty Management (DREAM) Logistics Fund. The financing marks the company's first commercial real estate debt transaction in Japan since it received approval to offer commercial real estate loans from the Tokyo Metropolitan Government in late 2009. Prudential Mortgage Capital is the commercial mortgage lending business of Prudential Financial, Inc. (NYSE: PRU).

"We are very pleased to have closed our first transaction in Japan, which illustrates the strength of our program and commitment to the Japanese commercial real estate market," said Thor Orndahl, a managing director who oversees Prudential Mortgage Capital's non-U.S. mortgage platform. "We look forward to building our presence in this market by providing attractive long-term financing to our borrowers."

The financing was a portion of a larger debt pool provided to DREAM Logistics Fund by Prudential and other Japanese domestic financial institutions. In Japan, Prudential Mortgage Capital seeks to provide long-term, fixed-rate, senior debt at moderate leverage for income-producing assets and the company is currently focusing on multifamily, office and warehouse properties in Tokyo.

Tomoyuki Ishikawa, who heads Prudential Mortgage Capital's Tokyo office said, "We are excited that Prudential's first deal in Japan was with a company as well-respected as DREAM. It is a wonderful first step in our plans to become a top-tier commercial real estate lender in the country."

Established in 2004, DREAM is a wholly-owned subsidiary of Mitsubishi Corporation and has launched several private real estate funds catering to both Japanese and global institutional investors. Its assets under management total more than ¥240 billion and it has grown to become one of the leading asset management companies in Japan.

Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with $62.5 billion in assets under management and administration as of December 31, 2009. Leveraging a 130-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Freddie Mac Targeted Affordable Housing programs, Fannie Mae DUS™, FHA, Prudential's general account; and other institutional investors. The company maintains a loan servicing portfolio of approximately $63 billion, as of December 31, 2009. For more information, please visit http://www.prumortgagecapital.com.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $667 billion of assets under management as of December 31, 2009, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping individual and institutional customers grow and protect their wealth. In the U.S., the company's Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com.

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