Interim Management Statement

For immediate release

16 July 2008

Land Securities Group PLC ("Land Securities" / "Group")

         LAND SECURITIES - FIRST QUARTER INTERIM MANAGEMENT STATEMENT          

Key statistics for the quarter were:

Investment property sales      £67.2m at 0.2% below March 2008 valuations      
                                                                               
Development lettings           £5.0m p.a. of lettings completed                
                                                                               
Trillium surplus space         58,300 sq m of disposals of surplus space       
disposals                                                                      
                                                                               
Portfolio voids                3.5% on like-for-like portfolio (3.4% at 31     
                               March 2008)                                     

Commenting on the first quarter, Francis Salway, Group Chief Executive of Land
Securities said:

"During the quarter, we continued to make progress on lettings and asset sales,
but at a slower rate which reflects the wider market conditions. We believe
that occupier reaction to economic conditions will be the key factor in
determining property performance over the next 12 months.

"We remain well positioned with moderate gearing, proven leasing skills and
limited development completions in London over the next two years. This gives
us the confidence to progress planning applications for projects to be
delivered in the next decade and also the flexibility to take advantage of
opportunities which may arise. Meanwhile, we have made good progress with our
internal preparations for demerger, and implementation will be taken forward
when market conditions are favourable."

LONDON PORTFOLIO

Investment activity

  * We have completed £44.0m of property investment sales, the largest of which
    was the disposal of Turnstile House, WC2. The sales were at 5.0% below the
    March 2008 valuation (before disposal costs).
   
  * Acquisitions totalled £21.2m during the quarter and related to site
    assembly for future development projects.
   
  * The void level on the like-for-like properties in our London portfolio was
    2.7% at 30 June (2.7% at 31 March 2008).
   
Development activity

  * During the quarter, we completed our refurbishment of 6,150 sq m of offices
    at 10 Eastbourne Terrace in Paddington, W2. The building is now 100% let.
   
  * On the small element of offices at our New Street Square development which
    has not already been let, we have now agreed terms to let 2,170 sq m to a
    single occupier. The remaining vacant office space totals just 4,310 sq m
    out of a total of 62,340 sq m.
   
  * We received a resolution to grant planning consent for the redevelopment of
    30 Old Bailey, EC4 to provide 39,300 sq m of office accommodation and 3,800
    sq m of retail space. The current leases on the property run until June
    2010.
   
  * We have been progressing the design for a number of development projects to
    be delivered from 2012, and we expect to submit planning applications on
    Victoria Transport Interchange in SW1, Arundel Great Court in WC2 and
    Selborne House in SW1 in the autumn of this year.
   
Urban Community Development

  * We entered into a partnership agreement with the Ministry of Defence to
    promote the development of the former Chattenden Barracks, near Chatham.
    The 320 hectare site is identified in the local plan for development and
    can provide over 5,000 homes. We will take the lead role to secure planning
    permission, invest in infrastructure and manage subsequent land sales on
    behalf of Defence Estates, who still own the site. The majority of the site
    will remain in operational use until 2012, after which initial sales of
    development land will commence. Our expenditure incurred in obtaining
    planning permission and delivering infrastructure will be reimbursed from
    sale receipts prior to an allocation of the net receipts between the
    parties.
   
RETAIL PORTFOLIO

Investment activity

  * We concluded a property swap with Hammerson, under which we acquired a
    number of shops on Sidwell Street, Exeter adjacent to the bus station site
    for £17.4m and we sold to Hammerson our 50% interest in our joint venture
    with them on Parc Tawe Retail Park in Swansea for £19.4m.
   
  * Our total disposals during the quarter totalled £23.2m and were at 10.2%
    above the March 2008 valuation (before disposal costs).
   
  * There were no material acquisitions during the quarter other than the
    property swap with Hammerson referred to above.
   
  * The void level on the like-for-like properties in our Retail portfolio was
    4.1% at 30 June (4.0% at 31 March 2008).
   
Development activity

  * We have completed a further 34 retail development lettings at an aggregate
    rent of £3.7m p.a. (Land Securities' share).
   
    Approximately half of the lettings were at the Cabot Circus scheme in
    Bristol, which is being undertaken in partnership with Hammerson, and is
    now 82% let or 87% let/in solicitors' hands (by income).
   
  * During the quarter we commenced demolition on the Trinity Quarter scheme in
    Leeds, where we have a 75% stake in a partnership with Caddick
    Developments. We also raised additional facilities of £352m of external
    development finance for the project. We have agreed terms to let 18% (by
    income) of the new build element of the project. Including the existing
    Plaza Centre which is to be refurbished, the project is now 31% let or in
    solicitors' hands in overall terms.
   
  * We obtained planning consent for the refurbishment and remodelling of our
    existing St John's Centre in Liverpool, where the current floor area of
    33,450 sq m will be increased to 44,600 sq m. This project does not yet
    form part of our formal development pipeline, but can be delivered from
    2013.
   
LAND SECURITIES TRILLIUM

Existing Contracts

  * We disposed of 44,900 sq m of surplus leasehold space on the Department for
    Work and Pensions (DWP) contract through lettings or lease surrenders, the
    most significant of which was the letting of 19,200 sq m to EDS at
    Heyhouses Lane, Lytham for £1.5m per annum.
   
  * Vacation notices issued by DWP during the first quarter totalled 18,358 sq
    m (70% leasehold and 30% freehold). This compares to an average quarterly
    figure during the year to 31 March 2008 of 33,000 sq m.
   
  * 13,400 sq m of surplus Royal Mail and Barclays properties were disposed of
    through lettings or lease surrenders.
   
New Business

  * Our final bid was submitted for the Northern Ireland Workplace 2010 project
    on 2 June 2008. We expect to hear in the autumn whether we have been
    successful.
   
  * We are working towards financial close on our Preferred Bidder projects
    namely the Defence Training Review, Norfolk Waste, Kent Building Schools
    for the Future (BSF), Inverclyde Schools and Thornton Hall Prison.
   
  * We continue to pursue projects where we and our joint venture partners are
    shortlisted, namely Birmingham BSF, Worcester Library, Tayside Mental
    Health and four streetlighting projects.
   
  * It has also recently been announced that we are on the shortlist, in a
    joint venture with United Utilities, as one of four bidders for the next
    stage of the Merseyside Waste PFI project.
   
FINANCE

  * As at 30 June 2008, net borrowings (including joint ventures but excluding
    non-recourse debt in PPP contracts) amounted to £6,008m at an average cost
    of 5.3% with an average maturity of 10.7 years. 80% of our debt was fixed.
    The market value of our debt and related interest rate swaps at 30 June
    2008 was £5,562m.
   
  * Since 31 March 2008 we have raised £424m of new debt facilities, including
    our share of debt raised in joint ventures. We also extended the maturity
    of some £825m of bank borrowings to July 2010 with the option to extend
    these facilities to July 2011.
   
  * As previously announced, our first quarterly dividend payment for the
    current financial year will be 16.5 pence per share, of which 90% will be
    in the form of a Property Income Distribution. It will be paid on 24
    October 2008 to shareholders on the register at 19 September 2008.
   
DEMERGER

  * We have made good progress with the internal preparations for demerger, and
    implementation will be taken forward when market conditions are favourable.
   
  * In February we announced that, following expressions of interest, we would
    run in parallel with the demerger preparations an evaluation of the
    benefits to shareholders of an acquisition of the Trillium business by a
    third party. We are currently assessing proposals received for the Trillium
    business.
   
                                   - ENDS -                                    

A conference call for analysts is being held today at 08:30 BST

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Call title: Land Securities Interim Management Statement

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For further information, please contact:

Francis Salway                            John Sunnucks/ David Allchurch       
                                                                               
Donal McCabe/ Alison Flynn                                                     
                                                                               
Land Securities                           Tulchan Communications               
                                                                               
T [phone]                     T [phone]                

Land Securities will hold its Annual General Meeting on Thursday 17 July 2008.
The results of voting on the resolutions will be posted on the afternoon of 17
July at the Investor section of our corporate website www.landsecurities.com.

Forward Looking Statements

This document may contain certain `forward-looking' statements. By their
nature, forward-looking statements involve risk and uncertainty because they
relate to future events and circumstances. Actual outcomes and results may
differ materially from any outcomes or results expressed or implied by such
forward-looking statements.

Any forward-looking statements made by or on behalf of Land Securities speak
only as of the date they are made and no representation or warranty is given in
relation to them, including as to their completeness or accuracy or the basis
on which they were prepared. Land Securities does not undertake to update
forward-looking statements to reflect any changes in Land Securities'
expectations with regard thereto or any changes in events, conditions or
circumstances on which any such statement is based.

Information contained in this document relating to the Company or its share
price, or the yield on its shares, should not be relied upon as an indicator of
future performance.