Meadowhall Update

British Land Co PLC
04 October 2007


MEADOWHALL UPDATE

British Land has withdrawn the marketing of partial holdings in its Meadowhall
Shopping Centre which commenced in May.  Despite a range of investor interest,
the uncertainty in financial markets has made the prospect of realising an
appropriate value unlikely at the present time.

This decision is underpinned by positive trading at Meadowhall, the number of
development and asset management opportunities underway and the successful
openings of Primark and a range of refitted stores after Sheffield's floods.
Footfall at Meadowhall last month was well up on 2006 and for the year to date
is outperforming national retail footfall data.

Notable too is the value of Meadowhall's financing structure - with interest
cost fixed at 4.98%, and average maturity of 16.5 years, the £838 million of
securitised financing enhances Meadowhall's prospective returns to British Land.

Stephen Hester, British Land Chief Executive commented;

"While we would have liked to find investment partners for Meadowhall, the
Centre's prospects together with the success of our extensive disposal programme
elsewhere, make the decision to hold a relatively painless one.  Since March
2005 we have profitably sold £5.8 billion of property taking our gearing down to
41% (LTV) as at June this year - its lowest level since 1995.  Our customer
focus continues to produce good rental growth across British Land's portfolio.
This complements our defensive strength deriving from prime properties, very
high occupancy rates and the greatest income protection in our sector."

                                      Ends


Notes to Editors
     
     •    Meadowhall is one of only six out of town super regional Shopping
          Centres in the UK.

     •    Meadowhall has an occupancy rate of 97.6% and is home to some of the
          most established international and national retailers in the country 
          including House of Fraser, Debenhams, Marks & Spencer, Next and 
          Primark.  Average unexpired lease length is almost 15 years.  For 80 
          per cent of the multiple retailers at Meadowhall, their unit is in the 
          top 10 performing outlets for their company.

     •    Meadowhall first opened in September 1990.  Valued at £1.64 billion
          (as at June 2007), annual net rental income is in excess of £75      
          million per annum.  ERV is in the order of £83 million per annum.  
          Rents have grown from circa £48 million when the Centre was acquired 
          in 1999.

     British Land is the largest UK REIT by assets (£16.3 billion) with total 
     assets under management of £21.4 billion, as at June 30, 2007.
          
     •    The portfolio, focused on the growth sectors of London Offices and Out
          of Town Retail, has the longest leases and occupancy rates at 98.6 per 
          cent are amongst the highest of the major UK REITs.
          
     •    Retail assets account for 55 per cent of the portfolio, 80 per cent of
          which is in prime out-of-town locations.  Offices account for 42 per 
          cent of the portfolio of which 97 per cent is London-based and 
          includes a £4 billion office development pipeline coming to fruition 
          between now and 2011.


Date: Thursday, 4th October, 2007

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