Prudential Real Estate Investors is taking an active role in the expansion of the real estate investment landscape in Latin America, through its investment offices located in Mexico City, Mexico, and Rio de Janeiro, Brazil. PREI established PREI Latin America in 2000 to execute its strategy of building a premier real estate investment management business that would co-invest with like-minded investors. PREI formed PREI Latin America to take advantage of opportunities for private real estate investors with strong operating and capital markets expertise to generate superior returns from investments in direct real estate assets in the region.

In 2003, PREI launched the Mexico Industrial Investment Program to invest in industrial real estate assets in Mexico through local joint venture partnerships, followed by a second phase in 2005. As of December 2008, the Mexico Industrial Programs have approximately US$ 900 million in investments.

In 2003, PREI also launched the Mexico Residential Investment Program to invest in residential real estate assets in Mexico through local joint venture partnerships, followed by a second phase in 2005 and a third phase in 2008. As of December 2008, the Mexico Residential Programs have approximately US$4.5 billion in investments.

In 2006, PREI launched the Mexico Retail Investment Program to invest in retail real estate assets in Mexico through local joint venture partnerships. As of December, 2008, the Mexico Retail Program has approximately US$600 million in investments.

In 2007, PREI launched a partnership with the TMW Pramerica Investment GmbH based in Germany to manage real estate investments in Latin America. As of December 2008, TMW Pramerica Investment GmbH has approximately US$ 70 million in investments in the region.

During the period, PREI has become the largest institutional equity investor in the Mexican real estate market, and has consolidated one of the three largest industrial portfolios.

The key to achieving success involves the commitment of a dedicated local team that will determine the challenges and risks of investing in Latin America and be able to access the best opportunities.

Reasons to invest in Mexico and Brazil: Reduced political and institutional risk Prospects regional economic consolidation "CORE" real estate investment opportunities in emerging markets Obsolete stock of real estate in the face of growing demand Compelling demographic forces stemming from a young population Increasing domestic savings, particularly from a rising middle class

Factors to consider in Latin America: Deceleration in the global economy Evolution of regional trade agreements: NAFTA, ALCA and MERCOSUR Political situation in Andean countries

Potential Obstacles to Investment: Lack of liquidity Lack of information Lack of transparency Inadequate legislation Unstable currency Perceived "country risk"