Acquisition(s)

FOR IMMEDIATE RELEASE

25 August 2006

LAP ACQUIRES CENTRAL LONDON PORTFOLIO FOR APPROXIMATELY £50.3 MILLION

London & Associated Properties PLC ("LAP"), the specialist retail property
investor, today announces that it has conditionally agreed to acquire the
entire issued share capital of APL Ocean Limited ("APL Ocean") and its directly
and indirectly wholly owned subsidiary undertakings including Atlantic
Properties Limited for an initial consideration of approximately £50.3 million
(the "Acquisition"), subject to a net asset adjustment post completion of the
Acquisition (capped at £10 million).

APL Ocean comprises a number of private companies each directly or indirectly
wholly owned by APL Ocean which owns a portfolio of property assets located in
central London made up of a mixture of retail, market trading, office, and
residential properties. The portfolio of properties generates rental income
through a variety of leases and licenses. The estimated net annual income
according to the property valuation report prepared by King Sturge LLP is £
2,981,965.

The Acquisition will be funded by an extension of £50,000,000 to LAP's existing
credit facilities with The Royal Bank of Scotland plc and by utilising LAP's
existing cash resources.

In view of its size, the Acquisition is conditional, amongst other things, on
the approval of Shareholders. This approval will be sought at the Extraordinary
General Meeting ("EGM") to be held at Carlton House, 22A St James's Square,
London SW1Y 4JH at 10 a.m. on 13 September 2006. A circular outlining the
resolutions to be taken at the EGM and outlining further details of the
Acquisition has today been posted to shareholders. The circular is also
available at the document viewing facility of the UKLA at the UKLA Document
Viewing Facility, Financial Services Authority, 25 The North Colonnade, Canary
Wharf, London E14 5HS.

Background to and reasons for the Acquisition

Over the past two years, the Board has actively sought to acquire shopping
centre assets to add to its existing portfolio. The Board has considered a
number of potential property investment opportunities, and in some cases the
Company has entered into early stage negotiations, but as a result of both the
commercial terms available and the Company's robust investment criteria, no
significant acquisitions have been made since 2003. The Company regularly
updates Shareholders in relation to its investment criteria in its annual and
interim accounts.

The Board has identified the opportunity to acquire the APL Ocean property
investment portfolio and therefore made the decision to widen the scope of its
investment criteria, whilst remaining focused on retail properties where the
Board believes LAP can enhance shareholder value through its active property
management approach.

The acquisition of APL Ocean provides the opportunity to acquire a portfolio of
central London properties that comprise a mixture of retail, market trading,
office, and residential properties.

The Directors' believe that those areas of London in which the APL Ocean
property investment portfolio is located are likely to enable LAP to attract
significant interest from retailers, occupiers and investors. The Directors
believe that the size and location of APL Ocean's property assets make it both
a rare opportunity and a significant acquisition for the Company.

In the Directors' opinion, the properties comprised in the Atlantic Group
portfolio, which are approximately 90 per cent. retail by rental income,
present an opportunity to use the Company's existing property management
expertise to improve revenues from the portfolio from their current level in
the short to medium term. The Directors intend to maximise the value of the
portfolio by refurbishing and upgrading certain properties. The Directors have
had preliminary discussions with professional advisers in this respect.

In the Directors' opinion, the properties are in sought after London locations,
and in certain cases there is potential to improve their configuration and add
significant lettable space. The Directors believe that this could add
significant value to the properties and thereby increase LAP's net assets and
earnings over the medium term. The acquisition of APL Ocean will increase the
rental income derived by LAP.

Information on APL Ocean

APL Ocean comprises a group of companies that owns in aggregate nine separate
properties, all of which are in central London. It is privately owned and since
incorporation has been family-controlled and managed. The properties have been
acquired by the Vendors and their family over many years. A summary of the
portfolio of properties the subject of the Acquisition is set out below:

Chenil House, 181/183 Kings Road, London SW3:

A substantial freehold in Chelsea. The ground floor and part of the first floor
are let to Daisy and Tom, the childrenswear retailer. There are four floors of
offices above. The total rent is approximately £620,000 per annum.

Antiquarius, 131/141 Kings Road, London SW3:

An extensive long leasehold building approximately 100 metres east of Chenil
House arranged as an antiques centre with 110 stall holders plus 5
self-contained shops fronting the Kings Road. The first floor contains offices
and a 119 square metre vacant residential unit. Gross rental income is
approximately £1,110,000 per annum and there is a ground rent payable of £
53,000 per annum to the Cadogan Estate as freeholder.

Rogers Antiques Galleries, 65 Portobello Road and 76 Kensington Park Road,
London W11:

A large freehold antiques centre in the Portobello Road. The upper floors are
residential and have been sold off on long leases. Total income is
approximately £190,000 per annum.

54 Chepstow Villas, London W11:

A large freehold house in Notting Hill. The basement has been incorporated into
Rogers Antiques Galleries. The house is currently let on an assured shorthold
tenancy at £117,000 per annum.

414/416 & 426/430 Coldharbour Lane, Market Row, Coldharbour Lane, Brixton
Village, Coldharbour Lane, 17/23 Electric Lane all in Brixton, London SW9:

Two adjacent established freehold markets in the centre of Brixton. Market Row
has 40 self contained units and is fully let. Brixton Village has 113 units and
backs on to Atlantic Road. Both markets are principally single storey, although
Brixton Village has six residential units at the Coldharbour Lane end. In
addition, a small area (approximately 20 square metres) of Brixton Village is
held on a long lease from Railtrack at £1,500 per annum. There are also 4
separate shops included on Coldharbour Lane and the adjacent Electric Lane. The
total rental income is approximately £1,100,000 per annum.

The Mall, Camden Passage, 359 Upper Street, London N1:

A Grade II listed freehold building in the centre of Islington. There are 35
stallholders at ground floor. The first floor comprises a restaurant and vacant
offices. The total rental income is approximately £290,000 per annum.

Gateway Arcade & Phelps Cottage, 355-357 Upper Street, Islington, London N1:

A newly-constructed freehold A2 (office) building that has been let in its
entirety to Foxtons Estate Agents at £230,000 per annum and a grade II listed
freehold vacant house in need of refurbishment.

The value of the gross assets of the Atlantic Group as at 30 November 2005 was
£60,338,000. The Atlantic Group's profit before taxation for the year ended 31
March 2005 was £2,778,000.

John Heller, LAP's Chief Executive, said: "This acquisition represents an
excellent opportunity to own a substantial retail portfolio in established
central London locations. We believe that London will continue to benefit from
its emergence as Europe's premier financial centre, and that these properties
will benefit from the growth that will follow. These buildings are principally
freehold, large scale and single storey. We have identified clear opportunities
to extend and reconfigure some of them, while at the same time, we believe we
can grow the rental income from day one. I look forward to updating
shareholders as our plans progress".

                                     Ends.                                     

Enquiries:

London & Associated Properties PLC                                             
                                                                               
John Heller, Chief Executive            Tel: [phone]                     
                                                                               
Robert Corry, Finance Director                                                 
                                                                               
Panmure Gordon & Co:                    Tel: [phone]                     
                                                                               
Andrew Godber                                                                  
                                                                               
Andrew Potts                                                                   
                                                                               
Baron Phillips Associates               Tel: [phone]                     
                                                                               
Baron Phillips                                                                 

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