Sheffield Letting to River Island

FOR IMMEDIATE RELEASE

30th May 2006

   LAP PRE-LETS 20,000 SHEFFIELD RETAIL UNIT TO RIVER ISLAND AT RECORD RENT    

London & Associated Properties PLC ("LAP"), the fully-listed specialist
shopping centre investor, today announces that it has pre-let a new 20,000 sq
ft retail unit, currently under construction, in its Orchard Square centre in
Sheffield to River Island at annual rent of £667,500, equivalent to £230 a sq
ft Zone A - a record for the centre.

The new unit is being created from the former Dixons and Index shops, on which
LAP negotiated lease surrenders last year, at a total cost of approximately £2m
and is expected to be completed by mid-2007. The two units previously generated
annual rental income of £535,000.

This latest development at Orchard Square, which LAP acquired seven years ago
for £15.775m, reflects the company's strategy of intensely managing its
investment properties as it seeks to enhance both income and capital value. At
the time of acquisition Orchard Square generated gross annual rents of £1.3m.
Including this latest letting the rent roll now stands at £2.2m with further
rental growth to come through during the course of 2006-7.

The pre-letting to River Island will have an important impact on other tenants
at Orchard Square who are currently paying a maximum rent of just £200 a sq ft
Zone A.

                                                                 
Finally, the redevelopment will also create a second smaller shop unit that
when let will, it is estimated, produce rental income of approximately £80,000
a year. This will add more than £200,000 a year of additional rents from the
scheme and take the income generated by this part of Orchard Square to almost £
750,000 a year. Additionally the development enables two floors of offices to
be freed up and amalgamated into the existing office space at the front of the
shopping centre.

John Heller, LAP's Chief Executive, said: "This pre-letting to River Island
demonstrates the success of our management strategy at Orchard Square and has
enabled us to dramatically improve the centre's rental income and capital
value. This also reflects our ability to deliver excellent shareholder returns
from our shopping centre assets."

                                     Ends.  

Contact:

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

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