Re: Retail Partnership

Land Securities Group Plc
11 January 2005

11 January 2005

LAND SECURITIES GROUP PLC ('Land Securities')

The Scottish Retail Property Limited Partnership assembles Scotland's largest
shopping centre

The Scottish Retail Property Limited Partnership (SRPLP/ the 'Partnership'), the
joint venture between The British Land Company PLC and Land Securities Group
PLC, has concluded the purchase of Princes Square and Southgate in East Kilbride
Shopping Centre for over £60 million, creating one of the largest shopping
centres in the UK and the largest in Scotland.

Princes Square was purchased from Prudential at a net price of £37.25 million,
showing an equivalent yield of around 6%. Built in 1997, the centre comprises 34
units, totalling 8,154 sq m (87,769 sq ft) with New Look and Sport Soccer as
anchors.

Also prime Zone A space on one level, Southgate extends to 4,259 sq m (45,843 sq
ft) with 14 units, including a popular Carlton Club bingo hall. The
Partnership's bid of £24.50 million for the space, formerly owned by Scottish
Mutual Assurance plc, was accepted over two other offers, and will bring a net
initial yield of 5.18%.

In total, the new assets acquired by the Partnership currently produce a gross
income of approximately £3.7 million per annum from almost 50 retail and leisure
outlets.

On behalf of The Partnership, John Wilson comments: 'First and foremost, these
acquisitions show long-term commitment to developing our already successful
retail pitch in East Kilbride. With the town facing increased competition from
neighbouring retail developments, this gives us the opportunity to create new
standards in the retail offer to benefit both retailers and consumers. We are
now better placed to create synergy between the malls, adding to a more
enjoyable shopping environment.

'In particular, we aim to meet the changing needs of retailers. Over recent
months, demand has been increasing for larger space - usually 3,000 to 5,000 sq
ft - and both Princes Square and Southgate present a variety of opportunities
for reconfiguration to improve unit sizes. This is likely to generate more
interest from high street retail giants and attract new flagship retailers keen
to secure their first outlet in Scotland - as was the case with Esprit.'

Merrick Marshall of The Partnership added: 'It made good strategic sense to
acquire the retail assets in East Kilbride adjoining existing Partnership
holdings. Through one ownership, we can take this once-in-a-generation
opportunity to unlock the real, sustainable potential of East Kilbride as the
dominant retail centre for south Glasgow. It will also provide benefits of scale
for the management of the centre, as well as an opportunity to improve
circulation and secure more unified control of the malls.

'There is no doubt that a co-ordinated asset management and tenant mix strategy
will strengthen the entire town and make it more attractive to a wider
catchment.'

The Partnership owns the remainder of the 1.2 million sq ft East Kilbride
Shopping Centre: comprising Centre West; Plaza Centre; Princes Mall; and
Olympia. Moreover, the joint venture is working closely with Strathclyde
Passenger Transport on the £4 million regeneration of the bus station, the
completion of which is scheduled for early 2005.

Donaldsons acted for SRPLP, Prudential Property Investment Managers Ltd
represented Prudential, and Abbey National Asset Managers and Montagu Evans
represented Scottish Mutual Assurance plc.


                                    - ends -


For further information, please contact:

Melissa Winsor
Land Securities Group PLC
Tel: [phone]

John Weston Smith
The British Land Company PLC
Tel: [phone]

Dido Laurimore
Financial Dynamics
Tel: [phone]


NOTES TO EDITORS:
     
•    East Kilbride Shopping Centre

East Kilbride Shopping Centre is Scotland's largest covered mall at 1.2m sq ft
(109,296 sq m), with a catchment of approximately 400,000 people. There are over
250 retail, leisure and catering operators in total, with key occupiers
including Debenhams, Boots, Next, French Connection and Game Station. It is the
only shopping centre outside a city centre with a full-line Debenhams department
store, and was home to the first Zara in the West of Scotland. There is also a
strong leisure offering with an ice rink and nine screen UCI cinema.

•    Scottish Retail Property Limited Partnership

Launched in March 2004, the Scottish Retail Property Limited Partnership is a 50
/50 joint venture between Land Securities Group PLC and The British Land Company
PLC, bringing together approximately 130,000 sq m (1.4 million sq ft) of
combined Scottish-based retail property assets worth £500 million.
     
•    The British Land Company PLC

In addition to those assets in the Partnership, British Land's £460m Scottish
portfolio comprises five retail parks, two offices and 11 prime high street
shops. The retail parks totalling over 600,000 sq ft are Meadowbank, Edinburgh,
Auldhouse Retail Park, Glasgow, Cuckoo Bridge Retail Park, Dumfries, St. James,
Dumbarton and Springfield Retail Park, Elgin, with two offices also in Edinburgh
and Glasgow. The vast majority of the prime shops are held within the City
centre of Glasgow, with other holdings in Edinburgh and Aberdeen.

•    Land Securities Group PLC

Land Securities is the largest property company north of the border with a
portfolio valued at £750 million. It includes four retail parks and eight
shopping centres, comprising: the Princes and Olympia Malls, Centre West and
Plaza Centre in East Kilbride; the Bon Accord Centre and St Nicholas Centre in
Aberdeen; the Almondvale Centre and extensive retail warehousing developments in
Livingston, including joint ownership of the McArthurglen Designer Outlet;
Kingsway West retail park in Dundee; and also joint ownership of Buchanan
Galleries in Glasgow.


    
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