1.2bn GBP JV with Sainsbury's

British Land Co PLC
26 March 2008

BRITISH LAND FORMS £1.2 BILLION SUPERSTORE JOINT VENTURE WITH SAINSBURY'S

The British Land Company PLC and J Sainsbury plc have agreed to create a £1.2
billion joint venture property partnership incorporating 39 superstores across
the UK.

The superstores, currently owned by British Land and leased to Sainsbury for 20
years, form the basis of the new 50:50 joint venture partnership. It will have
an initial life of 10 years, with an option to extend, and British Land will
actively asset manage and administer the JV properties.

The JV value of £1.2 billion represents a net equivalent yield of 5.1 per cent.
The consolidated net asset value for the new JV company is £544 million
including British Land's existing £722 million of outstanding securitised third
party debt which will be retained by the joint venture.

Stephen Hester, Chief Executive, British Land, said: "Today's agreement more
closely aligns the interests of property owner and retailer to deliver value to
shareholders in both companies. It acts as a catalyst to increase capital value
by improving, through extensions and developments, the Sainsbury Stores. "

                                      Ends

Notes to Editors

  • The JV owns 38 Sainsbury's stores and one Waitrose store.
  • Average store size is 73,000 sq. ft. with a rental income of £61 million a
    year.
  • The transaction is priced off the latest reported asset and liability
    valuations which are supported by other recent market evidence.
  • British Land is the largest owner of superstores in the UK, other than
    those owned by occupiers.
  • As at December 2007, British Land's total superstore portfolio encompasses
    97 stores, valued at £1.96 billion and accounts for 23 per cent of retail
    assets. Average lease length to first break is 19.7 years with 100 per cent
    occupancy rate.
  • Other significant UK British Land joint ventures include: Tesco, The
    Scottish Retail Property Partnership with Land Securities, and House of
    Fraser.
  • British Land is the largest UK REIT by assets (£14.6 billion) with total
    assets under management of £18.4 billion, as at December 2007.
  • The portflio, focused on the growth sectors of London Offices and Out of
    Town Retail, has the longest leases (average 14 years) and the highest
    occupancy rate (99 percent) of the major UK REITs.
  • Retail assets account for 58.8 per cent of the portfolio, 83 per cent of
    which is in prime out-of-town locations.  Offices account for 38.8 per cent
    of the portfolio of which 99 per cent is London-based and includes a 5
    million sq ft development pipeline coming to fruition between now and 2011.
  • British Land was awarded the title Sustainable Developer of the Year at '
    Building' magazine's annual sustainability awards 2007.

Date:  Wednesday, March 26, 2008


Media enquiries
Laura De Vere
Tel: [phone]. Mobile: [phone]

Investor Relations
Amanda Jones
Tel: [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange