Re Bristol Alliance

Land Securities Group Plc
23 June 2004

23 June 2004





LAND SECURITIES GROUP PLC ('Land Securities' / 'Group')



Bristol Alliance





Land Securities Group PLC and Hammerson plc have agreed to acquire Morley Fund
Management's one-third interest in the Bristol Alliance and will progress the
Broadmead expansion scheme as a 50:50 joint venture.



The £500 million mixed-use development, which received detailed planning consent
in December 2003, totals 139,350 sq m (1,500,000 sq ft), including 83,610 sq m
(900,000 sq ft) of retail space. The scheme will provide new retail, cafes,
bars, restaurants, residential apartments and public spaces in the heart of
Bristol, as well as leisure facilities and offices.



A joint project team has been created between Land Securities and Hammerson to
advance the scheme, building on the successful working relationship established
between the two companies at Bullring, Birmingham.



Morley will be paid for its investment in the scheme to date. In addition, the
Bristol Alliance will acquire a number of other properties currently owned by
Morley in Broadmead. Morley will also sell to The Mall Fund (a limited
partnership it set up in 2002 with Capital & Regional) its long leasehold
interest in the Galleries Shopping Centre, which does not form part of the
Broadmead expansion.



All three companies are committed to promoting central Bristol as the region's
premier retail destination.



Francis Salway, Chief Executive of Development at Land Securities, commented:



'We have made very good progress in advancing the Broadmead development and
obtained all necessary planning consents.  We now look forward to working with
Hammerson and the City Council to deliver this exciting new development.'



John Richards, Chief Executive of Hammerson, added:



'We are delighted to have increased our interest in this major development which
continues our programme of retail-led regeneration schemes.'



Ian Womack, Managing Director, Property, Morley Fund Management, said:



'We have decided to reposition our investment in Bristol by selling our interest
in the Bristol Alliance to Land Securities and Hammerson and selling The
Galleries Shopping Centre into The Mall, the highly successful Limited
Partnership set up by Morley Fund Management and Capital & Regional in 2002. I
am confident that The Mall will continue to work with Bristol Alliance in
enhancing Bristol's retail offer and promoting the entire city.'



It is anticipated that works will commence on site in mid 2005 and the new
development will open in 2008.



                                     -End-





For further information please contact:

Francis Salway                                          Tel: [phone]
Chief Executive of Development
Land Securities Group PLC

Emma Denne                                              Tel: [phone]
Director of Corporate Communication
Land Securities Group PLC

John Richards                                           Tel: [phone]
Chief Executive
Hammerson plc

Chris Smith                                             Tel: [phone]
Director of Corporate Affairs
Hammerson plc

Ian Womack                                              Tel: [phone]
Managing Director, Property
Morley Fund Management





Note to editors:



The overall Broadmead masterplan includes:



  • A four-storey flagship department store.
  • A further 15 major stores and more than 100 new shops.
  • Over 2,600 car park spaces.
  • New cycle routes, bus and coach stops.
  • Numerous dedicated public spaces, including a new square around Quakers
    Friars, featuring shops, restaurants and residential apartments.
  • a new covered civic space in front of the proposed department store.
  • More than 28,000 sq m (310,000 sq ft) of new office space with associated
    car parking.
  • Significant leisure-uses, including bars, restaurants and entertainment
    facilities.
  • 242 residential units including 24 affordable homes in the heart of the
    city.
  • Masterplanning architects Chapman Taylor, with the assistance of a
    specially commissioned artist and engineer, have designed the unique
    shell-shaped roof which will cover the central area and much of the scheme's
    three new streets. The first of its kind in Europe, the roof will provide
    protection from the elements without losing the open air 'city centre
    experience' - one of the nine key priorities identified by the consultation
    process.
  • The new 2,616-space car park, with its pedestrian bridge leading straight
    into the heart of the new Broadmead, will be a spectacular feature in itself
    - created by award-winning architects, Wilkinson Eyre, designers of the
    acclaimed Gateshead Millennium Bridge and the Explore-at-Bristol building.
  • The landmark four-storey department store will be the subject of a
    separate planning application and will have its own specialist architect. It
    will be part of the new gateway to Bristol - a dramatic view from the M32
    beyond a reconfigured Bond Street-Newfoundland Street junction towards a
    cutting-edge department store.
  • A CPO inquiry began on 15 June of this year and the decision is expected
    in early 2005.





Land Securities



Land Securities is a FTSE 100 company, quoted on the London Stock Exchange.  Its
market capitalisation is £5.5 billion (June 2004).  It has been at the forefront
of the UK's commercial property industry for 60 years.  Today, the Group
maintains its market leading position as the UK's largest quoted property
company by providing commercial accommodation and property services to a wide
range of occupiers.  The Group's objective is to create attractive and
sustainable returns for its shareholders through its activities, which include
property investment, development and property outsourcing.



Land Securities invests in four sectors of the commercial property market:
Central London offices, shopping centres and shops, out of town retail parks
across the UK and south-east industrial properties.  The Group's £8 billion
investment portfolio includes16 shopping centres across the UK, from Almondvale
Centre, Livingston to Gunwharf Quays in Portsmouth, 23 retail parks and over
735,000 sq m of office space in Central London.



Land Securities has a substantial development programme with over 20 development
projects either underway or being planned.  Projects include regeneration
schemes in historic British cities, three major retail-led urban regeneration
schemes and eight Central London developments. The Group is also masterplanning
one of Europe's largest regeneration schemes in Kent Thameside and has over
32,000 sq m of retail and industrial warehousing currently under development.


The Group is committed to environmental initiatives and community involvement.
This has been recognised by the Group's inclusion in the BiTC Corporate
Responsibilty Index, FTSE4Good Index and the Dow Jones Sustainability Index.
Its environmental performance has been recognised by the award of three Green
Apple Environment Awards and receiving ISO14001 accreditation for its work with
the DWP.






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