GBP 50m JOINT VENTURE ACQUISITION

FOR IMMEDIATE RELEASE

17th July 2003

 
LONDON & ASSOCIATED ACQUIRES FURTHER £50M SHOPPING CENTRE THROUGH JOINT VENTURE

                                                                               
London & Associated Properties PLC ('LAP') today announces that, through its
joint venture with Bank of Scotland, Analytical Properties Holdings Ltd
('Analytical'), it has exchanged contracts to acquire the 350,000 sq ft Church
Square Shopping Centre, St Helens from The Oldham Estate Company Ltd for £50m.

Originally developed in 1972, and refurbished in 1991, Church Square forms the
dominant part of St Helen's prime retail core and currently generates net rents
of £3.6m from a total of 82 tenants including BHS, Boots, Next and River
Island. The purchase price of the long leasehold interest in the centre
reflects a net initial yield of 7.0%, however a number of rent reviews from
some of the larger occupiers are due this year.

LAP's 50% share of the investment in the acquisition will be £3.9m of cash from
the company's own resources and has been generated by its successful disposal
programme of smaller, more mature retail properties over the past year. The
company's investment in the transaction will be split evenly between equity and
loan stock.

LAP will participate in both income and capital growth generated by the centre
and this investment will produce an initial gross return in excess of 10% per
annum.

As a result of this acquisition Analytical's portfolio of large shopping
centres stands at approximately £100m and LAP now manages retail property that
it owns directly, in partnership or through associated companies, with a value
approaching £225m.

John Heller, Chief Executive of LAP, said: 'The acquisition of Church Square is
part of our stated strategy to grow Analytical considerably by purchasing
substantial shopping centres in strong retailing towns with growth potential
and we have already identified a number of asset management initiatives that
will enhance the centre's value.

'We are aware of a number of large retailers seeking representation within St
Helen's and we are confident of being able to accommodate them within Church
Square in the future, further consolidating the town's position as a successful
retail centre.'

Iain Mackintosh, Bank of Scotland's Director of Joint Ventures, commented:
'Through our established working relationship with LAP we were able to exchange
contracts on this complicated investment ahead of schedule. We look forward to
working successfully with LAP on Church Square as we are already doing at King
Edward Court, Windsor which we acquired through Analytical last December for £
45.3m.'

It is anticipated the acquisition, which is subject to an assignment of the
head lease, will be completed by 8th August 2003.

Analytical was advised in the acquisition by Donaldsons while the vendor was
represented by Franc Warwick.


Contact:

            John Heller, Chief Executive, LAP.                              
Tel: [phone]

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

 

Ends.