Sale & Leaseback

Marks & Spencer Group PLC
18 June 2003



Issued: Wednesday, 18 June 2003

           MARKS & SPENCER IN SALE & LEASEBACK AT GRACECHURCH STREET

Marks & Spencer today announces the sale of office and retail premises
comprising 168 Fenchurch Street and 77 Gracechurch Street, EC3 to Gracechurch
Property Limited, an XL Capital Ltd company.

Marks & Spencer will receive cash consideration of £114.7m from the sale of the
property, which had a book value of £93m at 31 March 2003.

Marks & Spencer has taken a leaseback of the retail premises, which houses its
Fenchurch Street store.

The site which was purchased from Barclays Bank in 1997 was formerly the
Headquarter buildings for Barclays, and was successfully developed by Marks &
Spencer to provide a major City store together with 124,000 sq ft. of prime
office accommodation.

Chris Williams, Property Director at Marks & Spencer said: 'The sale of the
scheme, including the offices, to Gracechurch Property Limited, allows us to
recognise the value of the underlying asset, while the leaseback enables us to
retain our retail store, to service our city customers.



For further information, please contact:

Bella Pagdin  Corporate Press Office   020 7268 1967

For background information, please go to the Media Centre on our website at

www.marksandspencer.com/mediacentre












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