Re Joint Venture

British Land Co PLC
23 September 2002

                                                             23rd September 2002





                    BL GAZELEY CONCLUDES FIVE MAJOR DEALS AT

                             ITS PORTFOLIO OF SITES



BL Gazeley Ltd, a 50/50 joint venture company between The British Land Company
PLC and Gazeley Properties, has concluded five major transactions in the last
two months.  The joint venture company, set up in January 2001 to develop
distribution and industrial accommodation, has a portfolio of three development
sites totalling 41.3 hectares (102.1 acres) in Thatcham, Enfield and Redditch.



The latest transactions details are as follows:



1)         At Mill Park in Thatcham, BL Gazeley has contracted to sell on
completion a 33,059 sq m (355,860 sq ft) distribution facility to Matrix
Securities for £38.5 million.  The unit is being purpose built for Scottish &
Newcastle PLC which has taken it on a 20 year lease at a rent of £2,850,000 pa.
The building is due for completion next month.   BL Gazeley was represented by
Holley Blake and FPD Savills, while Tudor Toone acted for Matrix Securities.



On the remainder of the site a detailed planning application has been submitted
for a second unit of 22,296 sq m (240,000 sq ft) which the company can offer on
a 'FastTrack' build basis.



2)         At Delta Park in Enfield, packaging market leader MacFarlane Group UK
Ltd, a subsidiary of MacFarlane Group plc, has taken the first pre-let at the
second phase of development.   The 5,110 sq m (55,000 sq ft) unit has been taken
on a 17 year lease at a rent close to the quoting price of £80.73 per sq m
(£7.50 per sq ft).



BL Gazeley has started the 17 week construction programme with practical
completion scheduled for October 2002.  Jones Lang LaSalle and Holley Blake are
retained agents at Delta Park, while Alder King acted for MacFarlane.



3)         Warburtons, the UK's largest independent baker, has purchased 3.72
hectares (9.19 acres) at Delta Park.  In addition, BL Gazeley has entered into a
development agreement to build the first 10,498 sq m (113,000 sq ft) phase of a
production and distribution facility which will provide the family business with
its twelfth state-of-the-art bakery.  King Sturge acted for Warburtons.



4)         Powwow has taken a 2,721 sq m (29,290 sq ft) speculatively-built
warehouse at the first phase of Delta Park.  The UK's number one water cooler
company is paying a rent of £91.50 per sq m (£8.50 sq ft) on a 15 year lease.
Lambert Smith Hampton represented Powwow.



With a further 6,503 sq m (70,000 sq ft) at Delta Park under offer there is now
only one unit of 2,323 (25,000 sq ft) available, plus a site that can
accommodate a bespoke unit of 2,787 sq m (30,000 sq ft).



5)         At Ravensbank Business Park in Redditch, BL Gazeley has sold the
freehold of a 0.9 hectare (2.23 acre) site to Shepherd Developments for
£865,000. The company is to develop a 3,716 sq m (40,000 sq ft) office park.
The first phase will comprise a 1,573 sq m (16,932 sq ft) speculatively-built
office which can be divided into two units of 873 sq m and 700 sq m (9,397 sq ft
and 7,535 sq ft).



This sale is in  line with BL Gazeley's strategy to sell smaller plots in order
to focus on 'Big Shed' development.  The site can accommodate units of up to
23,225 sq m (250,000 sq ft) which can be offered on a 'FastTrack' build basis.
FPD Savills and Brown Harknett are joint letting agents for Ravensbank Business
Park, while Shepherd Developments was represented by Wareing & Company and KWB.



Commenting on the deals, Nigel Godfrey, Development Director for Gazeley
Properties said:



"We have made significant progress on the letting side this year in an occupier
market which is relatively flat overall, testament to the quality of location of
our sites. The decision to sell the investment of the S&N building was an easy
one to make given the current investor appetite for this type of product."



Tim Roberts, Head of Asset Management at British Land said:



"The strategy of buying very large, well located sites which have the
flexibility to cater for a range of demand, including the super sheds, is paying
off well. We are particularly pleased with securing such a significant letting
to Scottish & Newcastle and also forward selling the property. With nearly 50%
of our land holdings already spoken for we are keen to look at acquiring other
sites."





Contacts

The British Land Company PLC:

John Weston Smith, Chief Operating Officer         tel: [phone]


The British Land Company PLC:

Tim Roberts, Head of Asset Management              tel: [phone]



For further information about The British Land Company PLC, please visit
www.britishland.co.uk



For further information about Gazeley Properties or any of its other
developments please visit www.gazeley.com





Note to editors

The BL Gazeley portfolio consists of Mill Park, Thatcham; Ravensbank Business
Park, Redditch and Delta Park, Enfield.



Mill Park, totalling 14.6 hectares (36 acres), is one of the largest industrial/
distribution sites in the Thames Valley area.   It is situated in Thatcham near
Newbury, just 5 miles from junction 13 of the M4 and 10 miles from junction 12
and will provide 55,740 sq m (600,000 sq ft) of accommodation on completion.



Delta Park, which totals 8.94 hectares (22.1 acres), is located in the Brimsdown
area of Enfield, the second largest industrial location in London with excellent
links to the M25 and the North Circular (A406). The park will provide 37,160 sq
m (400,000 sq ft) of accommodation on completion.



Ravensbank Business Park - the 17.8 hectare (44 acre) mixed-use park is located
close to junction 3 of the M42 in Redditch.  The park is ideally suited to high
profile occupiers seeking a strong regional presence in a low-density park
capable of providing 67,353 sq m (725,000 sq ft) of space on completion.


                      This information is provided by RNS
            The company news service from the London Stock Exchange