Interim Results - Part 2

British Land Co PLC
30 November 2000


Part 2


Notes to the accounts for the six months ended 
30 September 2000 (unaudited)

1.     Basis of preparation

The interim accounts are prepared on the basis of the accounting policies set
out in the Group's statutory accounts for the year ended 31 March 2000,
consistently applied in all material respects.

The interim results incorporate adjustments for the revaluation of properties
and investments held at 30 September 2000.  The comparative results for the
six month period ended 30 September 1999 do not incorporate any adjustment for
the revaluation of properties or investments held at 30 September 1999.

The figures for the year ended 31 March 2000 have been extracted from the
statutory accounts which have been filed with the Registrar of Companies.  The
auditors' report on those accounts was unqualified and did not contain any
statement under section 237 (2) or (3) of the Companies Act 1985.

2.     Net interest payable

Year ended
  31 March
      2000                                                2000         1999
        £m                                                  £m           £m
   -------                                             -------      ------- 
              British Land Group
     41.5     Payable on: bank loans and overdrafts       26.3         19.3
    214.5                 other loans                    110.3        101.9
     15.3                 finance leases                                6.2
  -------                                              -------      ------- 
    271.3                                                136.6        127.4
     (1.4)    Deduct: development cost element
  -------                                              -------      ------- 
    269.9                                                136.6        127.4
    (20.6)    Receivable on: deposits and securities      (2.9)       (14.2)
    (15.3)                   loans to joint ventures      (7.4)        (8.0)
  -------                                              -------      ------- 
    234.0     Total British Land Group                   126.3        105.2
  -------                                              -------      ------- 

              Share of joint ventures
     15.3     Interest payable on shareholder loans        7.4          8.0
     33.6     Other interest payable (net)                21.1         15.2
  -------                                              -------      ------- 
     48.9     Total share of joint ventures (note 8)      28.5         23.2
  -------                                              -------      ------- 

    282.9     Net interest payable                       154.8        128.4
  =======                                              =======      =======

3.     Other income

On 5 June 2000, the Group entered into a conditional agreement to acquire a
29.7% stake in Liberty International PLC from Standard Bank of South Africa
and related parties.  Subsequently, Liberty International agreed to pay
Standard Bank a higher price for the shares and Standard Bank bought out
the Group's rights on a pre-agreed formula, resulting in a capital profit of
£15.3 million net of costs.

4.     Taxation

Year ended
  31 March
      2000                                                2000         1999
        £m                                                  £m           £m
   -------                                             -------      ------- 
      22.6  British Land Group                            15.6         16.0
       5.0  Share of joint ventures (note 8)               1.4          2.1
   -------                                             -------      ------- 
      27.6                                                17.0         18.1
   =======                                             =======      =======

The availability of capital allowances reduces the effective tax rate.

5.     Interim dividend

The interim dividend of 3.6 pence will be paid on 20 February 2001 to
shareholders on the register at the close of business on 12 January 2001.

6.     Earnings per share

Basic and diluted earnings per share are based on the profit attributable to
ordinary shareholders and on the weighted average of 518 million shares in
issue (March 2000 and September 1999 - 518 million).


7.     Investment, development and trading properties

                                                        Leasehold
                                                        ---------
                                             Freehold   Long   Short   Total
                                                   £m     £m      £m      £m
                                             --------   -----  -----  ------
Investment and development properties                   
Valuation and cost 1 April 2000               6,548.2   229.6        6,777.8
       Additions                                108.8                  108.8
       Disposals                               (318.4)  (55.5)        (373.9)
       Exchange fluctuations                     (0.5)                  (0.5)
       Revaluations                             140.7    (4.4)         136.3
                                             --------   -----   ----- ------
Valuation and cost 30 September 2000          6,478.8   169.7        6,648.5
                                             ========   =====   ===== ======

Trading properties
At lower of cost and net realisable value
30 September 2000                                47.7     2.2     2.3   52.2
                                             ========   =====   ===== ======

External valuation surplus on development and trading properties       140.1
                                                                      ------
 
                                                                      ------
Total investment, development and trading properties                 6,840.8
                                                                      ======

Investment, development and trading properties were valued by external valuers
on the basis of open market value in accordance with the Appraisal and
Valuation Manual published by The Royal Institution of Chartered Surveyors.

                                                                          £m
                                                                      ------
On an open market basis - External valuations:

       United Kingdom:      Weatherall Green & Smith                 6,733.5
       Republic of Ireland: Jones Lang LaSalle                         106.3
       Netherlands:         CB Richard Ellis B.V.                        1.0
                                                                      ------
Total investment, development and trading properties                 6,840.8 
                                                                      ======

                                                                          £m
                                                                      ------

Total external valuation surplus on development and trading properties

British Land Group                                                     140.1
Share of joint ventures                                                 18.1
                                                                      ------
                                                                       158.2
                                                                      ======
8.     Joint ventures

British Land's share of profits of joint ventures
Year ended
  31 March
      2000                                                 2000        1999
        £m                                                   £m          £m
   -------                                              -------     ------- 
      75.4  GROSS RENTAL INCOME                            38.2        35.3
   =======                                              =======     =======

      71.0  Net rental income                              35.7        33.6
      (2.1) Administrative expenses                        (1.0)       (1.3)
   -------                                              -------     -------
      68.9  OPERATING PROFIT                               34.7        32.3
       2.9  DISPOSAL OF FIXED ASSETS                        1.0         0.8
   -------                                              -------     -------
      71.8                                                 35.7        33.1
   -------                                              -------     -------
     (33.6) Net interest payable to third parties         (21.1)      (15.2)
     (15.3) Interest payable to British Land               (7.4)       (8.0)
   -------                                              -------     -------
     (48.9) NET INTEREST PAYABLE (NOTE 2)                 (28.5)      (23.2)
   -------                                              -------     -------
      22.9  Profit before taxation                          7.2         9.9
      (5.0) TAXATION                                       (1.4)       (2.1)
   -------                                              -------     -------
      17.9  Profit after taxation                           5.8         7.8
   =======                                              =======     =======

The amounts relating to captions shown in capitals are recognised at the
relevant point in the consolidated profit and loss account.

Summary of British Land's share in joint ventures

                                   Operating   Gross        Gross         Net
                                     profits  assets  liabilities  investment
                                          £m      £m           £m          £m
                                     ------- -------      -------     -------
The Public House Company Ltd             4.6   120.4        (73.7)       46.7
BL Universal PLC                        13.5   506.0       (252.1)      253.9
BL Rank Properties Ltd                   2.9    79.8        (53.5)       26.3
Cherrywood Properties Ltd 
(Republic of Ireland)                           30.8         (6.1)       24.7
BL Fraser Ltd                            3.0    88.6        (63.2)       25.4
BLT Properties Ltd                       3.2   109.8        (69.5)       40.3
Tesco BL Holdings Ltd                    4.7   154.4       (106.1)       48.3
BL West (established 29 September 2000)        177.0       (128.8)       48.2
Other joint ventures                     2.8   111.7          8.3       120.0
                                     ------- -------      -------     -------
Total                                   34.7 1,378.5       (744.7)      633.8
                                     ======= =======      =======     =======

The Group's share of joint venture external debt is £743.9 million (31 March
2000 - £633.2  million).  The amount guaranteed by British Land is £33.0
million (31 March 2000 - £33.0 million).

The Group's share of the market value of the debt and derivatives as at 30
September 2000 was £6.0 million less than the Group's share of the book value
(31 March 2000 - £6.3 million).

All companies are property investment companies registered in England and
Wales unless otherwise stated.


8.     Joint ventures (continued)

The movement for the period:
                                                      Equity   Loans   Total
                                                          £m      £m      £m
                                                      ------  ------  ------
At 1 April 2000                                        321.1   249.7   570.8
Additions                                               46.2    24.2    70.4
Repayment of loans                                              (2.6)   (2.6)
Share of profit attributable to joint ventures
(net of dividend)                                        5.0             5.0
Revaluations                                            (9.8)           (9.8)
                                                      ------  ------  ------
At 30 September 2000                                   362.5   271.3   633.8
                                                      ======  ======  ======

9.    Net debt

31 March
    2000     Maturity analysis of net debt                 2000        1999
      £m                                                     £m          £m
  ------                                                 ------      ------
             Repayable:
   168.1        within one year and on demand             269.6        55.1
 3,566.0        after more than one year                3,547.8     3,396.2
   146.6     Irredeemable                                 146.6       146.5
  ------                                                 ------      ------
 3,880.7     Gross debt                                 3,964.0     3,597.8
  (118.4)    Less cash and deposits                      (395.2)     (271.3)
  ------                                                 ------      ------
 3,762.3     Net debt                                   3,568.8     3,326.5
  ======                                                 ======      ======

39% of gross debt is repayable after more than 20 years (31 March 2000 - 40%).

              Net debt comprises: 

              Creditors due within one year
    37.3         Debentures and loans                      35.0        37.4
     6.1         Overdrafts                                 4.6         1.3
   124.7         Bank loans                               230.0        16.4
  ------                                                 ------      ------
   168.1                                                  269.6        55.1
  ------                                                 ------      ------

              Creditors due after one year 

 2,453.1         Debentures and loans                   2,435.4     2,469.6
   796.3         Bank loans                               795.4       241.6
                 Finance lease obligations                            368.8
  ------                                                 ------      ------
 3,249.4                                                3,230.8     3,080.0
  ------                                                 ------      ------ 

 3,417.5      Debt before convertible bonds             3,500.4     3,135.1
   463.2      Convertible bonds                           463.6       462.7
  ------                                                 ------      ------
 3,880.7      Gross debt                                3,964.0     3,597.8
  ------                                                 ------      ------
   (54.4)     Cash                                       (363.0)      (96.6)
   (64.0)     Term deposits                               (32.2)     (174.7)
  ------                                                 ------      ------
  (118.4)     Total cash and deposits                    (395.2)     (271.3)
  ------                                                 ------      ------
 3,762.3      Net debt                                  3,568.8     3,326.5
  ======                                                 ======      ======


Maturity of committed undrawn borrowing facilities

British Land has committed undrawn borrowing facilities of £1,120.5 million
(31 March 2000 - £1,241.9 million) of which £667.7million are over 2 years
(31 March 2000 - £695.4 million).

9.    Net debt (continued)

31 March
    2000  Interest rate profile -                          2000        1999
          including effect of derivatives
      £m                                                     £m          £m
  ------                                                 ------      ------

 3,207.0  Fixed rate                                    3,179.1     3,288.3
   150.0  Capped rate                                     200.0        38.2
   405.3  Variable rate (net of cash)                     189.7
  ------                                                 ------      ------
 3,762.3  Net debt                                      3,568.8     3,326.5
  ======                                                 ======      ======

          Secured/unsecured analysis of net debt

   708.8  Secured on the assets of the Group              707.3       710.3
 2,708.7  Unsecured                                     2,793.1     2,424.8
   463.2  Convertible bonds                               463.6       462.7
  ------                                                 ------      ------
 3,880.7  Gross debt                                    3,964.0     3,597.8
  (118.4) Cash and deposits                              (395.2)     (271.3)
  ------                                                 ------      ------
 3,762.3  Net debt                                      3,568.8     3,326.5
  ======                                                 ======      ======

After the balance sheet date, security was released over £124.1m of the 5.66%
and 8.49% 135 Bishopsgate Securitisations, reducing secured debt to £583.2m. 


Comparison of market values and book values at 30 September 2000

                                             Market        Book
                                              Value       Value   Difference
                                                 £m          £m           £m
                                             ------      ------     --------
Fixed rate debt:
   Securitised debt                         1,581.5     1,596.7        (15.2)
   Other fixed rate debt                    1,037.6       873.7        163.9
Convertible debt                              465.8       463.6          2.2
Bank debt (net)                               634.8       634.8
Derivatives                                   (21.5)                   (21.5)
                                             ------      ------     --------
Net debt                                    3,698.2     3,568.8        129.4
                                             ======      ======     ========

The market value and difference are shown before any tax relief.


10.     Notes to the cash flow statement

Reconciliation of operating profit to net cash inflow from operating
activities

Year ended
  31 March
      2000                                                 2000        1999
        £m                                                   £m          £m
  --------                                               ------      ------
     367.1  Operating profit                              191.6       192.5
      (1.1) Dividends receivable                           (6.3)       (0.7)
       0.4  Depreciation                                    0.1         0.2
      78.8  Decrease in trading properties                 16.8        76.8
      (5.4) Increase in debtors                           (10.6)      (14.4)
      (7.6) Increase (decrease) in creditors                8.9        14.0
  --------                                               ------      ------
     432.2  Net cash inflow from operating activities     200.5       268.4 
  ========                                               ======      ======

Analysis of Group net debt

                                  1                           30         30
                              April   Cash   Non cash  September  September
                               2000   flow  movements       2000       1999
                                 £m     £m         £m         £m         £m
                             ------ ------   --------   --------   --------
Cash at bank                  (54.4)(308.6)               (363.0)     (96.6)
Overdraft                       6.1   (1.5)                  4.6        1.3
                             ------ ------   --------   --------   --------
Net cash per 
cash flow statement           (48.3)(310.1)               (358.4)     (95.3)
Term debt                   3,411.4   84.3        0.1    3,495.8    3,133.8
Convertible Bonds             463.2               0.4      463.6      462.7
Term deposits                 (64.0)  31.8                 (32.2)    (174.7)
                             ------ ------   --------   --------   --------
Group net debt              3,762.3 (194.0)       0.5    3,568.8    3,326.5
                             ====== ======   ========   ========   ========

Reconciliation of net cash flow to movement in Group net debt

Year ended
  31 March
      2000                                                 2000        1999
        £m                                                   £m          £m
  --------                                               ------      ------
   2,708.2 Brought forward                              3,762.3     2,708.2
  --------                                               ------      ------
           Movement in net debt in the period
      32.1     (Increase) decrease in cash               (310.1)      (14.9)
     698.4     Cash inflow from movement in debt           84.3       328.6
     (25.7)    Cash inflow (outflow) in term deposits      31.8      (136.4)
  --------                                               ------      ------
     704.8 Changes resulting from cash flows             (194.0)      177.3
  --------                                               ------      ------
     448.7 Term debt acquired with                                    450.6
           Meadowhall Shopping Centre
     (99.4)Other non cash movements                         0.5        (9.6)
  --------                                               ------      ------
   1,054.1                                               (193.5)      618.3
  --------                                               ------      ------
   3,762.3 Carried forward                              3,568.8     3,326.5
  ========                                               ======      ======

11.     Net Asset Value per share

                                              30 September         31 March
                                                      2000             2000 
                                                       Net              Net
                                          Shares    Assets   Shares  Assets
                                               m        £m        m      £m
                                          ------   -------   ------  ------
Net Asset Value (undiluted)

Shareholders' funds as shown 
on balance sheet                           518.2   3,629.9    518.0 3,449.6
                                          ------   -------   ------  ------

Total external valuation surplus on development
       and trading properties (note 7)               158.2            143.9 
                                                   -------           ------
Net assets attributable to ordinary shares         3,788.1          3,593.5
                                                   =======           ======

Net Asset Value per share (undiluted)                  731p             694p
                                                   =======           ======

Fully diluted Net Asset Value

Net assets attributable to 
ordinary shares                            518.2   3,788.1    518.0 3,593.5

Adjust to fully diluted on conversion of:
       6% Irredeemable Convertible Bonds    30.0     146.6     30.0   146.6
       6.5% Convertible Bonds 2007          48.1     317.0     48.1   316.6
                                          ------   -------   ------  ------
Net assets attributable to fully diluted
       ordinary shares                     596.3   4,251.7    596.1 4,056.7
                                          ======   =======   ======  ======

Fully diluted Net Asset Value per share                713p             681p

The NAV includes the surplus of the external property valuation over the book
value of both development and trading properties.  Such properties are
included in the balance sheet at the lower of cost and net realisable value.

A 30 September 1999 comparative calculation is not shown as no external
property valuations were carried out at that date.

12.     Contingent liabilities

It is estimated that, in the event of the realisation of investment,
development and trading properties and fixed asset investments at valuation,
including development and trading surpluses, the liability for tax,
after capital losses and reliefs at 30 September 2000 would be in the region
of £550m (31 March 2000 - £509m).

Contingent liabilities of the Parent for guarantees to third parties amounted
to £33m (31 March 2000 - £33m).