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Great Portland Ests. (GPOR)

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Monday 21 August, 2000

Great Portland Ests.

Letter sent to Shareholders

Great Portland Estates PLC
21 August 2000

The  following  letter has been sent to the shareholders  of  Great  Portland
Estates today.

To the holders of ordinary shares, and, for information only, to the holders
of options under the Great Portland Share Option Scheme

Dear Shareholder

At  the  Annual  General  Meeting held on 18th  July  I  made  the  following

'On 8 March 2000, the Board of Great Portland Estates P.L.C. ('Great Portland'
or  the  'Company')  announced  a major strategic  initiative  to  widen  and
accelerate its property disposal programme and to use the proceeds to  return
80  pence per share in cash to shareholders  full details were provided in  a
Circular  to  shareholders  on 18 April.  Two of  the  preconditions  of  the
capital  reduction, through which the 80 pence per share payment  was  to  be
effected, were met on 26 May when shareholders gave their approval to it, and
on 1 June when the 9.5% Convertible Unsecured Loan Stock 2002 was redeemed in

Great  Portland announces that it has now effected sales of £400  million  in
aggregate, of which £179 million has been received and £221 million has  been
exchanged, with completion due before the end of July.  A further £20 million
of sales are in solicitors' hands.  Accordingly, application has been made to
the  Court,  and the Petition Hearing is likely to be set for  September.  On
confirmation  by the Court, the 80 pence per share will be paid approximately
two  weeks after the Petition Hearing to shareholders on the register on  the
day before it.  As part of the capital reduction process, all existing shares
will  be  cancelled,  and  three new shares will be  issued  for  every  five
previously held.

The  Company has obtained clearance from the Inland Revenue that the proposed
return  of cash to shareholders will be treated as a capital receipt  for  UK
tax purposes.'

I  am  now  pleased  to  report that we shall be applying  to  Court  on  6th
September  for sanction of the repayment of capital to shareholders  and,  in
the  absence  of unforeseen circumstances, I anticipate that the  sum  of  80
pence  per  ordinary  share  will  be  paid  some  two  weeks  thereafter  to
shareholders registered at the close of business on 5th September.

Richard Peskin