Re Acquisition of Portfolio

Land Securities PLC
26 November 2001

26 November 2001


LAND SECURITIES PLC ('Land Securities')

TELEREAL EXCHANGES CONTRACTS WITH BT
FOR ACQUISITION OF £2.38 BILLION PROPERTY PORTFOLIO

Telereal, a 50:50 joint venture between Land Securities Trillium ('LS Trillium
'), a subsidiary of Land Securities, and The Pears Group ('Pears') announces
that it has exchanged binding contracts with British Telecommunications plc ('
BT') for the £2.38 billion acquisition of the majority of the BT property
estate ('the estate').  Completion will take place on or before 14 December
2001.  The estate comprises 6,700 properties with a total floor space of 5.5
million square metres.

Under the terms of a new 30-year agreement, Telereal will also be responsible
for providing accommodation and estates management services to BT.  BT will
also, in addition to leasehold expiries, be able to vacate an agreed
percentage of space,  annually without penalty.  This will allow a more
flexible approach to its accommodation requirements.  Through its creative
approach to portfolio management Telereal will optimise value from the vacated
estate.

The properties being transferred comprise offices, telephone exchanges,
vehicle transport depots, warehouses, call centres and computer centres.  The
Specialised Estate (telephone exchanges and related technical buildings)
comprises 75% of the total, with the General Purpose Estate (offices and other
properties) constituting the remaining 25%.  95% of the 6,700 properties are
freehold or valuable leasehold with 5% short leasehold.  The BT Tower and BT
Centre in Newgate Street are excluded from the transaction.

LS Trillium and Pears will each invest up to £200 million in Telereal as
equity finance for the acquisition.  LS Trillium will be financing its equity
share through Land Securities' existing bank facilities.  Telereal will
finance the acquisition through a £1.8 billion asset-backed securitisation,
currently in preparation, secured against the Specialised Estate and £400
million bank debt secured against the General Purpose Estate.  Land
Securities, as the parent company of LS Trillium, and William Pears Family
Holdings Limited, a Pears company, have also entered into a performance
guarantee which will only be called upon should Telereal fail to fulfil its
obligations to BT.  The guarantee is capped and does not relate to the debt.
In return, BT will pay Telereal a total accommodation charge initially of
approximately £64 per square metre which includes £190 million (which
increases at three per cent per annum) for use of the freeholds.

The transaction also includes the transfer of approximately 350 employees from
the BT in-house corporate property team to Land Securities Trillium Telecom
Services Limited ('LST Telecom') which is 100% owned by LS Trillium, and will
be dedicated to providing the employees for Telereal.  Under the terms of the
arrangement, LST Telecom will meet all the employment obligations and will
recover the costs associated with this arrangement on a fully indemnified
basis from Telereal.

The accommodation charge will commence immediately following completion.
Telereal is working closely with BT to finalise arrangements for the transfer
of its corporate property team and expects to commence the provision of
services by 31 March 2002 at the latest at which point a services charge will
start to be paid by BT in addition to the accommodation charge.

Commenting on the acquisition, Manish Chande and Mark Pears said on behalf of
Telereal, 'This is a major step forward in the provision of a flexible
property outsourcing contract to a major corporate occupier.  It is paramount
that organisations can predict their occupational costs with certainty,
efficiently use their capital structure and focus on their core operations and
this transaction provides BT with all these advantages.   We are delighted
that this contract is now on its way to completion and look forward to
developing further a mutually beneficial relationship with BT.'

Geoffrey Almeida, chief executive, BT Affinitis said: 'We are delighted to
have exchanged contracts on a property transaction which has generated huge
interest in the corporate property world. BT is the first corporate to take
advantage of putting nearly all its accommodation with a single landlord who
sees accommodation as a service.'

                                    -Ends-

For further information, please contact:-

Telereal
Manish Chande/Ian Ellis
Land Securities Trillium
Tel: + 44 (0)20 7796 5500

Mark Pears/Graham Edwards
The Pears Group
Tel: + 44 (0)20 7433 3333

Land Securities
Ian Henderson/Andrew Macfarlane/Emma Denne
Tel: + 44 (0)20 7413 9000

BT Group Newsroom
Michael Wadley
Tel: + 44 (0)20 7356 5367

Financial Dynamics (for Land Securities)
Stephanie Highett/Andrew Dowler
Tel: + 44 (0)20 7831 3113

Notes for Editors

BT announced on January 4 2001 that it was in negotiations aimed at realising
the value of its property portfolio.  On April 10, BT announced that it had
chosen Telereal, a 50:50 joint venture owned by Land Securities Trillium and
The Pears Group which is dedicated to the management of the BT property
portfolio, as its preferred bidder.

Telereal will be financing this through the issue of a securitisation,
currently in preparation.

The divestment of the property estate will enable a more flexible approach to
BT's office arrangements and building requirements.

Currently Telereal will not be providing facilities management services but
will work with BT's existing facilities management contractor, Jaguar.

Land Securities is one of Britain's leading commercial property and property
services groups with fixed assets of £8 billion.  The company's portfolio is
focussed on four areas of the UK property market; Central London shops and
offices, shopping centres, retail warehousing and industrial premises.  Over
the past two years it has been implementing new strategies aimed at enhancing
the value it creates for shareholders.

As part of this strategy in November 2000 it acquired Trillium, now called
Land Securities Trillium, to enable Land Securities to offer a total property
outsourcing service.  Land Securities Trillium combines capital, estate and
facilities management expertise in a total outsourcing package. In 1998, it
won the PRIME contract to own and manage the majority of the Department of
Social Security's property portfolio. In 2001 Land Securities Trillium entered
into a 30-year contract with the BBC for the outsourcing of the BBC's London
and Scottish Estates.  In addition Land Securities Trillium will also through
Land Securities Development be providing 50,400 square metres of new
accommodation for the BBC at White City.

The Pears Group consists of a consortium of Pears family interests including
William Pears Family Holdings Limited, one of the largest private companies in
the UK. It holds substantial property interests and is involved in a
significant number of joint ventures.