Re Letting

Land Securities Group Plc
23 March 2006

23 March 2006

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

LANDFLEX LETS EASTBOURNE TERRACE

Land Securities has exchanged contracts with CB&I, a leading international
engineering contractor, for a single building property outsourcing contract at
the 83,000 sq ft Landflex building at 40 Eastbourne Terrace, Paddington W2.

CB&I will move from its existing accommodation at 10-30 Eastbourne Terrace into
the newly refurbished 40 Eastbourne Terrace taking a Landflex solution which
includes:

•         An institutional lease of more than 10 years.

•         A separate maintenance and service agreement through which Landflex
will provide repairs, maintenance and life cycle replacement for the duration of
the lease as well as providing security and cleaning services.

•         Rent at £35 per sq ft together with additional income from the
services contract.

Commenting, Mike Hussey, Land Securities' Managing Director, London Portfolio
said: 'We are delighted to retain CB&I as a customer.  The market has responded
well to Landflex which has become an integral part of our product offer in
London - and, as this latest letting demonstrates, it appeals equally to a major
business as it does to smaller companies.'

From its launch just over three years ago, the Landflex portfolio now comprises
four buildings which provide nearly 700,000 sq ft of office accommodation across
central London.  Land Securities continues to seek additional properties to add
to the portfolio which they anticipate growing to about 1.5 million sq ft in the
medium term.

In addition to 40 Eastbourne Terrace, the existing Landflex portfolio comprises:

•         7 Soho Square W1 (approximately 42,000 sq ft), the first Landflex
property, which was fully let nine months after launch and where the first
occupiers are in the process of renewing their initial leases.

•         Empress State, Earl's Court SW6 (approximately 440,000 sq ft) was let
to the Metropolitan Police Authority under a single building property
outsourcing Landflex solution.  This included the provision of accommodation and
services together with a Landflex sub-letting package.

•         140 Aldersgate Street EC1 (approximately 82,000 sq ft), acquired
vacant in 2005, is now 62% let with 30,000 sq ft available to let immediately.
Occupiers include Flightbookers Ltd, Millgroup Services Ltd and Vibrant Media
Ltd.

At 10-30 Eastbourne Terrace, 80,000 sq ft is occupied by CB&I under various
leases which expire in 2010. It is anticipated that they will relocate to 40
Eastbourne Terrace over the summer at which time their leases at 10-30
Eastbourne Terrace will terminate. This building is being evaluated as a
possible additional Landflex facility.

For further information please visit www.landflex.co.uk or contact:

Land Securities
Mike Hussey / Matt Harrington / Emma Denne
Tel: + 44 (0)20 7413 9000

Financial Dynamics
Stephanie Highett/Dido Laurimore
Tel: + 44 (0)20 7831 3113


NOTES TO EDITORS

About Landflex

Landflex is an integrated accommodation package that allows a company to match
their business accommodation requirements to their business plan and reduce
their total accommodation costs. This is achieved by providing a blend of leases
in specially designed buildings and a range of customer services.

Landflex was created by Land Securities, the UK's largest listed property
company, following feedback from its existing customers and in response to the
needs of modern businesses.  Landflex substantially exceeds the requirements set
by the Code of Practice for commercial leases which requests that landlords
offer priced alternatives to their tenants on a number of aspects of their lease
including length, rent review process and break clauses.

Land Securities aims to expand Landflex to some 1.5 million sq ft across Central
London in the medium term. With the success of the first two Landflex buildings,
an active search is underway for additional buildings.

About CB&I

CB&I executes on average more than 700 projects each year and is one of the
world's leading engineering, procurement and construction (EPC) companies,
specializing in lump-sum turnkey projects for customers that produce, process,
store and distribute the world's natural resources. With more than 60 locations
and approximately 11,000 employees throughout the world, CB&I capitalizes on its
global expertise and local knowledge to safely and reliably deliver projects
virtually anywhere. Information about CB&I is available at www.CBI.com.

About Land Securities

Land Securities is a FTSE 100 company and has been leading the UK's commercial
property industry for over 60 years.  The Group is the UK's largest quoted
property company and its activities involve investment, development, management
and the provision of property services to a wide range of occupiers.  Its
business focus is on three markets: retail property, London offices and property
outsourcing.  It manages over 70 million sq feet of commercial accommodation.

It has an £11.5 billion investment portfolio stretching the length and breadth
of the United Kingdom from Portsmouth in the south to Aberdeen in the north.  It
owns 32 shopping centres, 28 retail parks and more than 11 million sq ft of
commercial property in Central London.  It has a further 3,000 properties under
management through its property outsourcing business.

The Group employs 1,500 people across the UK.  Its major office locations are
London, Leeds and Glasgow.


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            The company news service from the London Stock Exchange