Clarion Partners Real Estate Income Fund Inc. (CPREIF) Provides $14 Million Mezzanine Loan for Memphis Office Property

SAN MATEO, California – (BUSINESS WIRE) – Clarion Partners Real Estate Income Fund Inc. (CPREIF) has granted commercial real estate investment and development company SomeraRoad a 14 million Clarion mezzanine loan that the 193,000 square foot creative Class A office building will continue to have stable cash flow from a Fortune 100 investment grade tenant who has been headquartered in the Memphis market for over 47 years.

Clarion Partners, LLC (“Clarion Partners”), a leading US real estate investment manager, is one of Franklin Templeton’s specialist investment managers.

The property, which used to house Gibson USA guitar production, is located in the heart of the Beale Street entertainment district in Memphis. The property was renovated in a build-to-suit arrangement for over $ 50 million in early 2021. It was then rented long-term to the tenant to give employees better access to the vibrant, live work-play facilities in downtown Memphis, including retail, dining and entertainment. Staff recently started occupying the room as COVID restrictions were eased.

“Memphis is a major transportation and logistics hub, with Memphis International Airport ranked as the second largest cargo hub in the world,” said Rick Schaupp, Managing Director of Clarion Partners. “The newly renovated space in the city’s entertainment district, which was rented to a high-quality tenant with a historically strong foothold in Memphis, is also close to I-40, which offers easy access to the larger subway area. This is an incredible opportunity to invest in creative office space in a stable Sun Belt market. ”

CPREIF’s private real estate investment strategy includes investing in wholly-owned assets, joint ventures and structured debt. This is the second mezzanine investment and the fourth property deal for the new fund this year.

About CPREIF

CPREIF is a non-diversified, closed-ended management investment company that continuously offers its common stock. The Fund’s investment manager, Legg Mason Partners Fund Advisor, LLC, is an indirect wholly-owned subsidiary of Franklin Resources, Inc. (“Franklin Resources”) and the Fund’s investment sub-advisor, Clarion Partners, is an indirect, majority-owned subsidiary of Franklin Resources . In addition, the Fund’s securities sub-advisor, Western Asset Management, LLC, is an indirect wholly-owned subsidiary of Franklin Resources. Hard copies of the full audited financial statements of the Fund are available free of charge upon request. Further information on CPREIF can be found here.

About Clarion partners

Clarion Partners has managed real estate on behalf of many of the world’s largest and best-known institutional investors for nearly four decades. Through CPREIF, private investors can benefit from Clarion’s expertise and track record. The private individuals’ funds are managed in the same disciplined way as their institutional assets and with the same focus on creating value through excellence.

Clarion Partners is headquartered in New York and has strategic offices in the United States and Europe. With more than $ 63 billion in real estate and debt under management, Clarion Partners offers a wide range of real estate strategies across the risk-return spectrum to more than 500 institutional investors around the world. Clarion Partners is an independent subsidiary of Franklin Templeton. You can find more information about the firm at www.clarionpartners.com.

About Franklin Templeton

Franklin Resources, Inc. is a global investment management company, with subsidiaries operating as Franklin Templeton, serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better results through investment management expertise, asset management and technology solutions. Through its specialized investment managers, the company brings extensive skills in equities, bonds, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 70 years of investment experience and assets of over $ 1.5 trillion as of June 30, 2021. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

Investment Risks

The fund was recently established and has a limited history of business. An investment in the Fund involves considerable risk. The Fund is intended primarily for long-term investors and an investment in the Fund should be considered illiquid. Unitholders may not be able to sell their units in the Fund or may not be able to sell them at a favorable price. Fixed income securities involve interest rate, credit, inflation and reinvestment risks. As interest rates rise, the value of fixed income securities decreases. High-yield bonds have higher price volatility, illiquidity and the probability of default. The Fund’s investments have a strong real estate investment focus and are therefore subject to the risks typically associated with real estate, including, but not limited to, local, state, national or international economic conditions; including market disruptions due to regional concerns, political unrest, sovereign debt crises, and other factors. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. The Fund and / or its subsidiaries employ leverage which increases the volatility of investment returns and exposes the Fund to increased losses if an underlying Fund’s investments decline in value. The Fund may use derivatives such as options and futures, which can be illiquid, add disproportionately to losses and potentially have a significant impact on the Fund’s performance.

Liquidity considerations

The Fund should be viewed as a long-term investment as it is inherently illiquid and only suitable for investors who can accept the risks associated with the limited liquidity of the Fund. Limited liquidity will only be made available to Shareholders through the Fund’s quarterly repurchase offers for no more than 5% of the Fund’s Shares outstanding at Net Asset Value. There is no guarantee that these buybacks will go as planned or at all. The shares will not be listed on any public exchange and no secondary market is expected to develop.

Before investing, carefully consider a fund’s investment objectives, risks, fees and expenses. This and other information can be found in each prospectus or in the summary prospectus, if available, at www.leggmason.com. Please read it carefully.

All investments involve risk, including loss of capital. Past performance is no guarantee of future results. All information, statements or opinions contained herein are general in nature, are not directed to or based on the financial situation or needs of any particular investor, and do not constitute investment advice or forecast future events and should not be construed as such, a guarantee of future results or a recommendation regarding a particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in securities or investment strategies should consult their financial professional.

INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | CAN LOSE VALUE

© 2021 Franklin Distributors, LLC, member FINRA, SIPC. Franklin Distributors, LLC, Clarion Partners, LLC, and Legg Mason Partners Fund Advisor, LLC are all subsidiaries of Franklin Resources, Inc

TN21-054