Acquisitions and sale

British Land Co PLC
11 April 2005


11th April 2005

British Land acquires six Homebases, a food superstore and takes back the
Sainsbury's lease at Meadowhall

The British Land Company PLC has purchased five Homebase stores from Sainsbury's
Supermarkets Ltd for £52M. The stores are located in Birkenhead, Derby, Ipswich,
Rayleigh Weir and Tunbridge Wells, and total 181,000 sq ft
(16,815 sq m) and will be owned by British Land under new 150 year leases.

All of these Homebases share the same sites as existing Sainsbury's food stores
and enjoy open A1 planning consents. All of the stores are leased to Homebase
Limited with an average of 12 years unexpired, producing a current income of
£2.35M (£13 per sq ft average). The purchase will show an initial return of
4.22%.

British Land has also acquired a 93,000 sq ft (8,640 sq m) food superstore from
Sainsbury's on an 11-acre site in Crawley. The superstore lease is guaranteed by
J Sainsbury Plc for a new term of 30 years with 5 yearly upward only rent
reviews at a starting rent of £1.9m pa based on a store rent of £19.50 per sq
ft. The site also contains a 43,500 sq ft (4,050 sq m) Homebase, car wash,
petrol-filling station and drive-though McDonalds. The initial payment of £47.4M
reflects an initial yield of 5.25% and will be subject to a further top-up
capital payment on the settlement of the Homebase rent review due in December
2005.

In a connected transaction British Land has contracted to purchase back the
Sainsbury's lease of the 100,000 sq ft food store at Meadowhall. Bob Bowden,
Property Investment Director of British Land commented, "I am delighted to
secure this accommodation at Meadowhall as it offers a number of significant
opportunities to enhance the tenant mix".

As part of the linked transaction British Land has undertaken to sell the
Sainsbury's store at Selly Oak back to Sainsbury's, to facilitate the
regeneration of the Selly Oak area.

British Land was advised by Colliers CRE and Smith Young and Sainsbury by
Gilbert Bath and Angermann Goddard & Lloyd.

Contacts

The British Land Company PLC:               Tel:           [phone]
Bob Bowden, Property Investment Director
John Weston Smith, Chief Operating Officer  Tel:           [phone]

Finsbury:                                   Tel:           [phone]
Edward Orlebar



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