Re: Joint Venture

Land Securities Group Plc
11 October 2006

11 October 2006





Land Securities Group PLC ('Land Securities' / 'the Group')



LAND SECURITIES SELECTS EQUITY PARTNER FOR £500 MILLION CITY SCHEME



Land Securities confirmed today that an affiliate of Boston-based real estate
investment firm, Beacon Capital Partners LLC, is to be its joint venture partner
on the development of One New Change, London EC4.



Beacon Capital Partners is entering into a 50:50 joint venture with Land
Securities for the £500 million project, which was granted detailed planning
consent from the City Corporation of London earlier this year.



Designed by Jean Nouvel, the 560,000 sq ft (52,024 sq m) landmark retail and
office development will occupy a high profile site to the east of St Paul's
Cathedral, and is expected to become a major visitor attraction and shopping
destination for the City of London.



Comprising 220,000 sq ft (20,440 sq m) of retail arranged over three levels, and
incorporating four 25,000 sq ft (2,320 sq m) anchor stores, One New Change will
be the City's first purpose-built shopping centre. The development will also
provide 340,000 sq ft (31,590 sq m) of premier office accommodation and will
include an extensive rooftop public space with spectacular views across St
Paul's and the wider city.



Richard Linnell, Head of Investment Management - London Portfolio at Land
Securities, said: 'We selected Beacon Capital Partners on the basis of their
suitability from an initial list of 12. Beacon has an extensive track record in
mixed-use development and understands the issues involved in delivering high
profile projects.  We are looking forward to working with Beacon on this
prestigious scheme and are confident that they will be an excellent partner.'



Paul Parkinson, Senior Managing Director of Beacon Capital Partners, said: 'We
are delighted to be working with Land Securities, one of the premier developers
in Central London and a business that shares the common aim of excellence in
high quality and innovative design delivered with financial acumen.  One New
Change will be the first significant London development property within our new
Fund, Beacon Capital Strategic Partners IV. The project fits with our '
value-added' investment strategy which focuses on our European target markets in
London and Paris.'



Land Securities was advised by Strutt & Parker.


For further information please contact:

Land Securities Group PLC                       Financial Dynamics
Emma Denne                                      Stephanie Highett/Dido Laurimore
Tel: [phone]                        Tel: [phone]



Notes to Editors



Land Securities Group PLC

Land Securities is a FTSE 100 company, quoted on the London Stock Exchange.  It
has been at the forefront of the UK's commercial property industry for over 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, owning and managing 6.5 million sq m of
property across the UK.



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 holds a market leading position in three areas of the UK
commercial property market:



  • Retail,
  • London offices and
  • Property outsourcing.



The £12.9 billion investment portfolio includes office and retail space in
Central London, 30 shopping centres, 30 retail parks and 10 supermarket
properties located across the UK.



It has a substantial development programme including major retail-led urban
regeneration schemes and Central London mixed-use developments.  The Group is
also masterplanning one of Europe's largest regeneration schemes in Kent
Thameside.

The Group leads the market in property outsourcing where, through Land
Securities Trillium, it provides accommodation and property-related services to
the Department for Work and Pensions, Norwich Union, Barclays Bank, DVLA and
through Telereal to BT.



The Group is committed to environmental initiatives and community involvement
recognised by the Group's inclusion in the FTSE4Good Index and the Dow Jones
Sustainability Index and the awarding of a 'Big Tick' by BiTC.



For more information on Land Securities visit www.landsecurities.com





Beacon Capital Partners

Beacon Capital Partners, LLC is a real estate investment firm headquartered in
Boston with offices in Los Angeles, New York, Paris and London. Beacon has been
involved in real estate activities for over 60 years, with an established
reputation as a high quality owner and developer of office and mixed use
product. Beacon was formed in 1998 following the merger of its predecessor
company Beacon Properties Corporation with Equity Office Properties.



Since its inception in 1998, Beacon Capital Partners has sponsored five
investment vehicles representing over $4.5 billion aggregate equity capital from
various endowments, foundations and pension funds. The Company's most recent
Fund, Beacon Capital Strategic Partners IV, is the largest office focused
private equity fund in the US, with $2 billion of committed equity capital.



For more information on Beacon Capital Partners visit www.beaconcapital.com


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