Re Agreement

British Land Co PLC
21 December 2000


The British Land Company PLC has agreed to subscribe for 50% of the ordinary
shares and loan stock in London & Henley Holdings Limited at a cost of
approximately £18 million.

London & Henley owns a portfolio of 79 blocks of flats, all freehold or long
leasehold, the majority of which are let on assured shorthold tenancies which
are concentrated within the Greater London area.  70% of the portfolio is in
Central London.  Security Capital European Realty, the owner of London &
Henley, has retained the other 50%.

British Land has procured its interest based upon a value of the portfolio of
£152 million.   An independent valuation comfortably exceeds this figure. 
Income is some £12.5 million.

Abbey National Treasury Services plc has provided a 7 year loan of £114.5
million on terms reflecting a fixed cost of 6.75%.

The existing directors of London & Henley headed by Kerry Kearton-Gee, are
leaving at completion of the transaction and will no longer be associated with
the company.  

Colliers Conrad Ritblat Erdman (CCRE) have entered into an agreement to manage
the properties.  Some key members of the existing staff of London & Henley are
joining CCRE.

The Joint Venture intends to retain this portfolio as an investment.  For
British Land this is an extension of its existing interest in the residential
market where it has built up a portfolio of some £35 million over the last 2.5
years.


Contacts

The British Land Company PLC:
John Weston Smith, Finance Director, telephone: [phone]

Bell Pottinger Financial Limited:
Kate Power, telephone: [phone]