Outsourcing Contract

Land Securities Group Plc
11 January 2005


11 January 2005


LAND SECURITIES GROUP PLC ('Land Securities' / 'Group')


Land Securities Trillium and Barclays Bank agree new property outsourcing deal


Land Securities announces that its property outsourcing business, Land
Securities Trillium, has agreed an innovative new property outsourcing deal with
Barclays Bank ('Barclays').

The transaction involves 14 properties totalling 31,540 sq m and has two
elements:

  • Barclays will sell Westwood Business Park, Coventry (three buildings
    totalling 11,300 sq m) to Land Securities Trillium on a 20-year leaseback
    arrangement.

  • Land Securities Trillium will assume responsibility for 13 short
    leaseholds surplus to Barclays' requirements and largely vacant as a result
    of its property rationalisation in London and the south of England.
    Barclays will make a capped payment to reflect the letting risk, as Land
    Securities Trillium will assume responsibility for all future benefits and
    liabilities relating to the transferred interests.

Barclays Bank's main objectives in undertaking the deal are to achieve property
cost certainty and financial benefit through the two-way transaction structure,
as well as transferring the management burden associated with a non-core
property portfolio.

Ian Ellis, Chief Executive of Land Securities Trillium, said 'We are delighted
to have agreed this new, long-term contract with Barclays Bank.  It plays to
Land Securities Trillium's proven strengths in property risk management and
maximising asset values. It again demonstrates that we can provide bespoke
property outsourcing solutions to suit our customers' specific needs. This
agreement confirms the continuing evolution of the property outsourcing market.'

Chris Davies, Barclays Bank's Group Property Director, said 'We are pleased to
be commencing this long-term property outsourcing agreement with Land Securities
Trillium.  The transfer of these properties helps us to realise our property
strategy and in turn support our business needs.'

Land Securities Trillium was advised by Nelson Bakewell.  Barclays Bank was
advised by Jones Lang LaSalle and Atis Real Weatheralls.

                                     -Ends-


For further information, please contact:

Land Securities
Ian Ellis / Cat Ley
Tel: [phone]

Financial Dynamics
Stephanie Highett / Dido Laurimore
Tel: [phone]

Barclays Bank
Jo Thethi
Tel: [phone]


NOTES TO EDITORS:

Land Securities Trillium

Land Securities Trillium, part of the Land Securities Group, is one of the UK's
leading providers of property outsourcing solutions.  Capital, estate strategy,
property management, facilities management and risk management services are
combined to meet the particular needs of corporate and public sector
organisations.  Land Securities Trillium currently owns or manages over 8,400
properties throughout the UK.  Clients include the Department for Work and
Pensions, the BBC, BT and Norwich Union.

This contract with Barclays Bank is the second property outsourcing contract
that Land Securities Trillium has undertaken with a financial services client
since April 2004.  A long-term agreement with Norwich Union commenced in June
2004 and is progressing to programme.


Land Securities Group PLC

Land Securities is a FTSE 100 company, quoted on the London Stock Exchange.  It
has been at the forefront of the UK's commercial property industry for 60 years.
  Today, the Group maintains its market leading position as the UK's largest
quoted property company by providing commercial accommodation and property
services to a wide range of occupiers.  The Group's objective is to create
attractive and sustainable returns for its shareholders through its activities,
which include property investment, development and property outsourcing.

Land Securities holds a market leading position in three areas of the UK
commercial property market:
          
     •    Retail
     •    Central London offices and
     •    Property outsourcing.

Its £8 billion investment portfolio includes more than 810,000 sq m of office
space in Central London and substantial retail holdings in Oxford Street,
Tottenham Court Road and Notting Hill Gate.  In addition the Group owns 18
shopping centres and 25 retail parks located across the UK.


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