Statement re Debenture Stock

Great Portland Estates PLC
13 March 2002

13th March, 2002

For immediate release

Great Portland Estates P.L.C.

Proposed purchase of

£130,000,000 10.75 per cent. First Mortgage Debenture Stock 2021                                        

Great Portland Estates P.L.C. ('Great Portland') announces that, following
consultation with the Association of British Insurers ('ABI'), it has today
given notice to holders of its £130,000,000 10.75 per cent. First Mortgage
Debenture Stock 2021 (the 'Stock') of a proposal to facilitate the purchase of
the Stock in full. The proposal will be put to a meeting of Stockholders on 5th
April, 2002.

Under the proposal, the terms of the Stock would be amended to enable a
subsidiary of Great Portland to purchase the Stock at a price equal to the
higher of par and the price at which the yield on the Stock equals 1.05 per
cent. above the yield on the 8 per cent. Treasury Stock 2021. The subsidiary
intends to exercise this right shortly after the meeting.

A special committee of the ABI has examined the proposal and finds it
acceptable. The members of the committee (who represent approximately £50.5
million / 39 per cent. in nominal amount of the Stock) have agreed to vote in
favour of the proposal in respect of their holdings, and are recommending the
same course of action to other ABI members who hold the Stock.

The proposal, if accepted, will reduce Great Portland's weighted average cost of
borrowing, which was 9.5 per cent. five years ago, to 6.5 per cent. and will
virtually eliminate its current mark-to-market liability under FRS 13. Based on
gilt yields at the close of business on 11th March, 2002, the cost of the
purchase of approximately £197.6 million would result in a one-off exceptional
charge of approximately £67.6 million (pre-tax) in the year ending 31st March,
2003, representing the premium to be paid for the purchase of the Stock. The
cost of the purchase will be met from the group's existing cash and bank
facilities.

Commenting on the proposal, John Whiteley, Great Portland's Finance Director,
said:

'In the last three years we have sold £850 million of non-core properties, and
now hold a portfolio of some £1.1 billion in central London and offices in the
South East. With the proceeds we have repaid £355 million to shareholders
through a return of capital and share buy-backs, and £186 million to bondholders
through the early repayment of our 9.5 per cent. Convertible Unsecured Loan
Stock 2002 in 2000 and our 9.5 per cent. First Mortgage Debenture Stock 2016
last year. The proposal announced today will bring the amounts returned to
shareholders and bondholders into balance, and represents a further stage in the
process of creating an appropriately financed company with a portfolio which is
almost exclusively focused in central London.'

Further information:

Great Portland Estates P.L.C.

John Whiteley, Finance Director 020 7580 3040

Cazenove & Co. Ltd

Francis Burkitt, Director 020 7825 9942

This announcement has been approved for the purposes of section 21 of the
Financial Services and Markets Act 2000 by Cazenove & Co. Ltd, which is
regulated by the Financial Services Authority.


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