Legal Agreement

Land Securities PLC
13 June 2001





13 June 2001





                   Land Securities PLC ('Land Securities')



                  TELEREAL ACQUIRES BT UK PROPERTY PORTFOLIO

                               FOR £2.3 BILLION





Land Securities announces that Telereal Holdings Limited ('Telereal') has
today entered into a legal agreement with BT to acquire BT's UK property
portfolio for approximately £2.3 billion.  Telereal, a 50:50 joint venture
owned by Land Securities Trillium and The William Pears Group, was selected by
BT as the preferred bidder for the property contract on April 10, 2001.



Closing the transaction, the largest of its type in the UK, is conditional
principally on Telereal completing its funding arrangements.



Manish Chande, Chief Executive of Land Securities Trillium, commented: 'This
is a landmark transaction which illustrates the increasing realisation among
companies of the value that can be unlocked from their property assets.'



Ian Henderson, Chief Executive of Land Securities, commented:  'We are
extremely pleased to have been able to make such rapid progress on this
exciting project, which is the first to be agreed since the restructuring of
our business following the acquisition of Trillium last year.'



Telereal, which will raise finance on the bond markets to complete the
transaction, will supply property management services to BT on an ongoing
basis so enabling BT's management to focus on the core communications
business.



The alliance with Telereal will provide BT with improved flexibility in its
approach to office arrangements and building requirements including the
ability to vacate up to ten million square feet of property within the first
ten years.





For further information, please contact:-



Land Securities

Ian Henderson/Jim Murray/Manish Chande

Tel: [phone]



BT Group Newsroom

Ross Cook

Tel: + 44 (0)20 7356 5369



Financial Dynamics (for Land Securities)

Stephanie Highett/Andrew Dowler

Tel: [phone]



Notes for Editors



BT announced on January 4 2001 that it was in negotiations aimed at realising
the value of its property portfolio.  On April 10, BT announced that it had
chosen Telereal, a 50:50 joint venture owned by Land Securities Trillium and
William Pears Group which is dedicated to the management of the BT property
portfolio, as its preferred bidder.



The transaction is principally conditional on the funding of Telereal and the
finalisation of the terms of the transaction documentation.



BT Business Services is responsible for BT's property estate, which has a
total floor space of six million square metres.  Seventy per cent of the 7,500
properties are operational buildings for which BT will retain the freehold and
exclusive control.



The divestment of the property estate will enable a more flexible approach to
BT's office arrangements and building requirements.



Land Securities is one of Britain's leading real estate providers with fixed
assets of £8.3 billion.  The company's portfolio includes a balanced mix of
offices, shops, shopping centres, retail warehouses, leisure and industrial
properties.



Land Securities Trillium ('LST') was established in 1997 and acquired by Land
Securities PLC in November 2000. It combines capital, estate and facilities
management expertise in a total outsourcing package. In 1998, LST won the
PRIME contract to own and manage the majority of the Department of Social
Security's property portfolio. In March 2001, LST was selected by the BBC as
the preferred bidder for its property portfolio. LST is also one of two
shortlisted bidders for the London Underground Property Partnership.



The William Pears Group is one of the largest private companies in the UK. It
holds substantial property interests and is involved in a large number of
joint ventures.