Property Acquisition

British Land Co PLC
11 October 2004





                                                                 11 October 2004

                BRITISH LAND BUYS TWO SHOPPING CENTRES IN SLOUGH

British Land has bought the Queensmere and the Observatory, two adjacent
freehold shopping centres forming Slough's retail heart. The price was £192
million and the equivalent yield is 6.3%. The Company already owns the linking
80,000 sq ft Allders Department Store.

The Queensmere and Observatory Centres now provide 565,000 sq ft of
accommodation, primarily shopping, with an office element too. Included in the
purchase are two car parks with 1,600 spaces.

Together the two shopping centres comprise 45% of the entire retail provision
within Slough. They are the only two covered schemes in the town. Additionally,
Queensmere is linked to the neighbouring major Marks & Spencer store which has a
return frontage into the scheme.

Queensmere's principal tenants, anchored by Littlewoods and Allders, are
Woolworth, New Look and Top Shop. The Observatory has Primark, T. K. Maxx and
Argos.

There is considerable scope for improvement through asset management initiatives
and rationalisation, which could include linking the two centres.

CCRE acted for British Land and DTZ for the seller.

Contacts

The British Land Company PLC:
Bob Bowden                   tel: [phone]
John Weston Smith            tel: [phone]

Finsbury:
Edward Orlebar               tel: [phone]
Faeth Birch                  tel: [phone]




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