Completion of acquisition

Land Securities Group Plc
05 February 2007




5 February 2007

Land Securities Group PLC ('Land Securities')


   LAND SECURITIES TRILLIUM COMPLETES ACQUISITION OF LEADING PUBLIC PRIVATE 
          PARTNERSHIP BUSINESS, 'SECONDARY MARKET INFRASTRUCTURE FUND'


Land Securities Group PLC announced today that its property partnership
business, Land Securities Trillium ('LST') has completed the acquisition of the
specialist public private partnership ('PPP') business, Secondary Market
Infrastructure Fund ('SMIF').

LST has paid £527 million for the equity of SMIF from former shareholders STAR
Capital Partners, Halifax Bank of Scotland, and AMP Capital Investors and has
also assumed SMIF's net debt of circa £400 million.

The acquisition brings to LST an equity holding in 79 additional PPP projects
totalling 2.34 million square metres of accommodation.  Some 80% of the
portfolio comprises public service buildings including schools, hospitals and
prisons. The balance of the portfolio lies in infrastructure assets such as
highway maintenance and a stake in a water company.

Ian Ellis, Chief Executive, LST, said: 'This acquisition positions LST as a
leading player in the public private partnership market. Our entry into the
sector, just 12 months ago, with our investment in Investors in the Community
ensured our position in the primary PPP market. This latest investment in SMIF
now gives us access to the secondary PPP market. The two sectors are showing
increasing convergence and our collective interests amount to some 100 PPP
projects. Our combined expertise in this emerging market will provide our
customers with some of the strongest experience in the industry.'

Bill Doughty, former CEO of SMIF and now Managing Director of LST Investment
Capital said: 'Fully integrating SMIF into the LST business ensures a robust
future in the PPP sector for the enlarged business. Over the following months we
will be combining our businesses to create a formidable offering of an expanded
pool of expertise backed by even greater financial security.'

It is anticipated that LST will aim to substantially reduce the capital invested
in SMIF through the disposal on an interest in mature projects to third party
investors, while maintaining minority stakes and ongoing asset management
responsibility. LST will continue to build on SMIF's excellent track record of
acquiring PPP interests.


                                     -Ends-


For further information, please contact:
Ian Ellis / Emma Denne                             Stephanie Highett
LST / Land Securities                              Financial Dynamics
T [phone] / (0)20 7413 9000            T [phone] / [phone]


Notes to Editors

SMIF was set up in 2001 and acquired by STAR in December 2003 with HBOS and AMP
subsequently providing further capital to fund growth.  SMIF is now the leading
player in the secondary public private partnership market with a portfolio of
equity holdings in 79 PPP projects totalling 2.34 million square metres of
accommodation.  SMIF has an estimated market share in excess of 30% of the deals
transacted in the secondary PPP market.  The accommodation portfolio includes:

NEP 65,000sq m: the refurbishment, partial rebuilding and maintenance of an
estate of office properties for the Inland Revenue within a 10 mile radius of
Newcastle-upon-Tyne. Fully operational.

South Tees Hospital 120,000sq m: Financing, design, development, construction,
operation and maintenance of the enlarged James Cook University Hospital
(formerly South Tees Acute Hospital). Fully operational.

Hereford Hospital 40,000sq m: PFI project to design, build, operate and maintain
and Acute Hospital in Hereford. Fully operational.

Glasgow Schools 337,000 sq m: a 30-year concession to design and build two new
secondary schools and to renovate 27 existing secondary schools. In addition it
is to maintain and operate the assets over the life of the concession.

Falkirk Schools 60,000sq m: the design, construction, refurbishment, operation
and maintenance of five secondary schools in the Falkirk area of Scotland. Fully
operational.

SMIF comprises 89 people, of which 16 form the management team with the balance
responsible for providing asset management on many of the contracts.  SMIF
offers asset management activities including the management of day to day
services, finance, insurance and life-cycle capital maintenance.  The existing
management team will have a stake in the business's future returns and growth.


Land Securities Trillium

Part of the Land Securities Group, Land Securities Trillium is one of the most
established and innovative names in property outsourcing. We focus on
understanding our customers' business and property requirements and meeting them
through excellent service and innovation.  We manage and provide services to
numerous commercial properties nationwide, for a growing number of companies and
government departments. These activities sit alongside Land Securities'
investment portfolio, worth many billions of pounds, which includes a vast range
of shopping centres and retail parks as well as London landmark buildings. We
are also involved in a major urban community development programme.




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