Completion of Acquisition

Land Securities PLC
13 December 2001


13 December 2001


LAND SECURITIES PLC ('Land Securities')

TELEREAL COMPLETES ACQUISITION OF
BT'S £2.38 BILLION PROPERTY PORTFOLIO

Following the announcement of the exchange of contracts on 26 November 2001
Telereal, a 50:50 joint venture between Land Securities Trillium 
('LS Trillium'), a subsidiary of Land Securities, and The Pears Group ('Pears'),
announces that it has today completed the acquisition of BT's property estate 
for £2.38 billion.

Telereal is also pleased to announce the successful completion of the £1.8
billion asset-backed securitisation to finance part of the acquisition price.


                                    -Ends-


For further information, please contact:-

Telereal

Manish Chande

Land Securities Trillium

Tel: [phone]



Telereal

Mark Pears/Graham Edwards

The Pears Group

Tel: [phone]



Land Securities

Ian Henderson/Andrew Macfarlane/Emma Denne

Tel: [phone]



BT Group Newsroom

Michael Wadley

Tel: [phone]



Financial Dynamics (for Land Securities)

Stephanie Highett/Andrew Dowler

Tel: [phone]



Notes to Editors

-     As announced to Land Securities' shareholders on 26 November 2001, the 
estate comprises 6,700 properties with a total floor space of 5.5 million square
metres.  In addition, under the terms of a 30-year agreement, Telereal will be 
responsible for providing accommodation and estates management services to BT.  
In return, BT will pay Telereal a total accommodation charge initially of 
approximately £64 per square metre which includes £190 million (which increases 
at three per cent per annum) for use of the freeholds.



      The properties acquired comprise offices, telephone exchanges, vehicle 
transport depots, warehouses, call centres and computer centres.
There are 6,700 properties of which 5% are short leasehold.  The BT Tower and
BT Centre in Newgate Street are excluded from the transaction.



-     The securitisation is the largest Commercial Mortgage Asset Backed 
Securitisation in the UK.



-     LS Trillium and Pears have each invested up to £200 million in Telereal as
equity finance for the acquisition.  LS Trillium is financing its equity share 
through Land Securities' existing bank facilities.  Land Securities, as the 
parent company of LS Trillium, and William Pears Family Holdings Limited, a 
Pears company, have also entered into a performance guarantee which will only be
called upon should Telereal fail to fulfil its obligations to BT.  The guarantee
is capped at £50 million for each investor in respect of performance, plus a 
further £10 million in relation to other matters potentially arising from the 
transaction, but to the extent that the relevant Telereal entities generate cash
available for distribution to the investors, a further amount of up to £51 
million could be claimed out of these distributions under the guarantee 
arrangements.  There are no other guarantee liabilities of Land Securities, LS 
Trillium or Pears or their subsidiaries arising out of the transaction and no 
parent company guarantees in relation to the repayment of any debt.


-     Telereal's advisers throughout the transaction were as follows:-

Auditors

PricewaterhouseCoopers

Securitisation


Lead Manager and Sole Bookrunner
Schroder Salomon Smith Barney
Co Lead Manager
Barclays Capital
Royal Bank of Scotland
Co Managers
Deutsche Bank
JP Morgan
UBS Warburg
Fortis Bank



Debt financing

Eurohypo


Legal Advisors

Allen & Overy
Brodies (Scotland)
Freshfields
Nabarro Nathanson
L'estrange & Brett


Property

GVA Grimley
Insignia Richard Ellis