Acquisition

Land Securities PLC
11 October 2000

     
     LAND SECURITIES TO ACQUIRE ONE NEW CHANGE
     
     Land Securities PLC has agreed terms with the Bank of England to
     purchase its long leasehold interest in One New Change, London EC4 for a
     price exceeding the asking price of £175 million.
          
     Occupying a 1.14 hectare site, overlooking St Paul's in the centre of
     the City's retail and office district, One New Change provides 35,786 m2
     of offices with ancillary storage, 2,431 m2 of retail space and 92 car
     spaces.  Currently producing rental income of £13.5 million per annum,
     the property is let to Allen & Overy, the Royal Bank of Scotland and a
     variety of well-known retailers, including Boots, the Body Shop and
     Next. The majority of leases expire in 2006.
          
     Next year about 55% of the office space is subject to review and the
     retail units in Cheapside, the City's prime shopping street, are also
     reversionary. The property offers an excellent opportunity to improve
     income while also providing the potential for a profitable medium term
     redevelopment of up to 83,000 m2  gross of offices and retail space.
     
     Commenting on the acquisition Ian Henderson, Chief Executive said, 'New
     Change represents a rare opportunity to acquire a large city centre site
     in a unique location which has the potential to be redeveloped into a
     landmark mixed use project. In due course we look forward to working
     with the Corporation of London to create an exciting scheme that will
     underpin London's status as the leading financial centre in Europe and
     bring to the City a new level of amenity for its workers and visitors.
     
     This acquisition is consistent with our core strategy of acquiring large
     assets which provide the opportunity to add value through active
     management and also utilise our expertise in delivering complex schemes.
     At the same time we continue to sell assets which do not meet our
     criteria.'
     
     This announcement follows a three-month marketing campaign by the Bank's
     property advisers, Drivers Jonas.  The property, described by some City
     surveyors as the most important City site to come to the market for a
     least a decade, has attracted interest from UK and international
     property companies, resulting in nine bids by the September deadline.
     Land Securities PLC was represented by Strutt & Parker.
     
     
     For further information
     Land Securities PLC
     Ian Henderson/
     Jim Murray
     020 7413 9000
     
     Bank of England Press Office
     020 7601 4411
     
     Financial Dynamics
     Emma Denne
     020 7831 3113