Debt Restructure

British Land Co PLC
30 August 2006

                                                                  30 August 2006

                  £1 BILLION DEBENTURE RESTRUCTURING COMPLETED

The British Land Company PLC ("British Land") has completed a market leading,
multi-tranche £1 billion restructuring of its debentures.

All tranches benefit from being issued by The British Land Company PLC and the
restructuring creates the largest individual UK debenture security pool valued
at £1.8 billion. The deal is expected to improve the liquidity of the
debentures, given the overall enlarged size, improved common covenants and
enhanced transparency.

The new debentures are as follows:

   •£98 million 6.75% First Mortgage Debenture Bonds due 2011
   •£200 million 6.75% First Mortgage Debenture Bonds due 2020
   •£310 million 5.357% First Mortgage Debenture Bonds due 2028
   •£25 million 9.375% First Mortgage Debenture Bonds due 2028
   •£330 million 5.264% First Mortgage Debenture Bonds due 2035
   •£42 million 8.875% First Mortgage Debenture Bonds due 2035

British Land will make a pre-tax exceptional charge of £228 million (1), mainly
due to the difference between the redemption value and book/nominal value of the
re-couponed debentures. EPRA adjusted NAV will be reduced by 30 pence per share;
there will be virtually no effect on NNNAV. British Land's annual interest costs
will be reduced by approximately £10 million and its weighted average cost of
debt will be reduced from 5.69% to 5.41%.

Shareholders will benefit from re-couponing to give a lower average interest
cost on the new debentures and as such British Land will enjoy increased
dividend cover and distribution flexibility. In addition, British Land benefits
from the creation of a simplified, uniform secured debt structure for the
non-securitised part of the group.

This announcement follows a prior regulatory announcement issued on 21 July 2006
that provides more detail on the transaction and the initial proposal to
bondholders.

Contacts

The British Land Company PLC
Laura De Vere                                           Tel.: [phone]

Finsbury
Faeth Birch                                             Tel.: [phone]


(1) The financial effects of the Proposed Transaction on British Land are stated
    on a pro forma basis as though the Proposed Transaction were completed on 30
    June 2006.


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