Acquisition

LONDON & ASSOCIATED PROPERTIES PLC
26 July 1999

           LAP ACQUIRES SHEFFIELD SHOPPING CENTRE FOR £15.775m 
                     TAKING GROUP ASSETS TO £100m+

London & Associated Properties plc ('LAP') today announces that it has 
exchanged contracts to acquire the freehold 117,000 sq ft Orchard Square 
Shopping Centre in the heart of Sheffield from MEPC plc for £15.775m, 
reflecting a net initial yield of 7.28%. This represents LAP's largest 
acquisition to date.

The acquisition will be funded by a new variable rate £21m 10 year term 
loan from NatWest Bank plc which will also be used to refinance a £7m loan 
due for repayment in five years. 

As a result of the purchase LAP's gross property assets have risen to £91m 
and group assets have topped £100m for the first time.

Located on Sheffield's prime shopping street, Fargate, Orchard Square 
occupies a 1.52 acre site and currently generates annual gross rental 
income of £1.3m against an ERV of £1.7m a year. Tenants include TK Maxx, 
which occupies the 28,500 sq ft anchor store, Virgin Megastore, 
Waterstones, Arcadia, The Body Shop and Index. 

Constructed in the mid-1980's Orchard Square comprises a total of 30 
retail units on the ground and first floor levels set around an open 
courtyard. In addition to the 104,000 sq ft of retail space there are 
two separate office buildings, Orchard House and Orchard Chambers, 
which provide a total of 12,700 sq ft of space on three upper levels.

Sheffield city centre retail property has recovered strongly over the past 
three years as both vacancy rates have fallen and Zone A rents have risen, 
despite competition from the nearby Meadowhall shopping mall. Three years 
ago prime Zone A rental levels had fallen to £130 a sq ft but today recent 
lettings on Fargate have reflected a £200 per sq ft Zone A.

John Heller, LAP director, said: 'We are delighted to have acquired 
Orchard Square at a time when there are so few city centre shopping 
centres of this quality on the market.

'I believe the centre provides us with tremendous scope to increase both 
the income stream and the capital value over the next few years. We are 
already examining proposals to make Orchard Square more visually exciting 
and to take advantage of the 5.5m pedestrians who pass through the centre 
each year. This should include amalgamating and extending the units onto 
the existing square and increasing the size of some of the major stores.'

Mr Heller confirmed that this is further evidence of the shift in emphasis 
of LAP's shopping centre portfolio towards larger centres with high growth 
potential. LAP is actively looking to dispose of a number of smaller 
properties so that it has the resources to acquire other large shopping 
centres. Following this acquisition larger shopping centres account for 
60% of the company's gross assets.

Contact:  John Heller, Director, 
          London & Associated Properties plc.           Tel: [phone]

          Baron Phillips, 
          Baron Phillips Associates.                    Tel: [phone]