Re Retail Partnership

Land Securities Group Plc
18 March 2004

18 March 2004

LAND SECURITIES GROUP PLC ('Land Securities')

LAND SECURITIES AND BRITISH LAND FORM £500M RETAIL PARTNERSHIP


Land Securities Group PLC (Land Securities) and The British Land Company PLC
(British Land) announced today the creation of the Scottish Retail Property
Limited Partnership ('the Partnership'), a joint venture that will include the
shopping centre assets of both companies in Aberdeen and East Kilbride.

The 50/50 Partnership between the two companies will initially own over 1.4
million sq ft (130,000 sq m) of retail space, valued at approximately £500m.
These assets currently produce gross rents of circa £32m per annum from over 330
tenancies.  British Land will be undertaking the administration role for the
Partnership, with Land Securities providing the asset and property management
services by integrating the assets into its existing management infrastructure
in Scotland.

The creation of the Partnership provides benefits of scale and enables the
partners to maximise the long-term value of the centres.  The partners will
increase their ability to attract and service high quality tenants.  Forming the
Partnership will enable the partners to manage the assets with maximum
efficiencies.  In due course, the Partnership plans to create a joint
development plan for the assets to provide an enhanced environment for shoppers
and retailers.

In Aberdeen, Land Securities' Bon Accord Centre and British Land's St Nicholas
Centre make up the current prime retail pitch between the John Lewis store and
Union Street.  Plans here include providing more retail floor space to
accommodate current requirements and to improve the connectivity and public
realm in the city centre.

In East Kilbride, British Land will be contributing the Plaza Centre and the
recently completed Centre West, which houses retailers such as Debenhams, Next,
Zara, French Connection and HMV.   Land Securities will contribute Princes Mall
and Olympia which, alongside a strong line-up of retailers, also includes a
multi-screen cinema, library, ice rink, food court and restaurants.  A
co-ordinated asset management and tenant mix strategy will strengthen the entire
town and make it more attractive to a wider catchment to the South of Glasgow.

Ian Henderson, Group Chief Executive of Land Securities, commented, '
Partnerships like this make sound business sense.  This will serve the local
community very much better and, by using our property and asset management
expertise, we can leverage economies of scale and enhanced value creation
opportunities, both of which will assist us to maximise our investment returns.'

John Ritblat, Chairman of British Land, added, 'This Partnership makes strategic
sense for British Land and Land Securities.   The partners will benefit from
joint ownership of larger assets with enhanced potential for value creation and
Aberdeen and East Kilbride will benefit from the combined firepower of British
Land and Land Securities, a team that is committed to improving the centres.'

Land Securities was advised by Slaughter & May and Dundas & Wilson.

British Land was advised by SJ Berwin, Semple Fraser and Henderson Boyd Jackson.

Other advisors include Eric Young & Co. and Montagu Evans for Land Securities
and Donaldson's and Colliers CRE for British Land.


                                    - Ends -


For further information, please contact:

Ed Orlebar / Gordon Simpson
PR to the Partnership
Finsbury
[phone]

Editors' notes

Land Securities Group PLC

Land Securities Group PLC provides commercial accommodation and property
services to a wide range of occupiers across the United Kingdom. Its £8 billion
portfolio is focused on four core sectors: offices and shops in Central London,
shopping centres, out-of-town retail parks and industrial properties located in
the south east. In addition, the group is a market leader in the new area of
total property outsourcing, providing accommodation and property related
services to Government and major corporations such as BT and the BBC. Through
its extensive development programme, Land Securities is committed to the
retail-led regeneration of several major city centres and brownfield sites in
the south east, as well as new office schemes in central London.

The British Land Company PLC

The British Land Company PLC is one of the leading property investment and
development companies in the UK, with a portfolio split primarily between prime
London office and out-of-town retail assets in the UK valued at £9.6 billion.
Total funds under British Land property management, including partners' shares
of joint ventures, exceed £11.0 billion.  Its portfolio includes the 1.4 million
sq ft Meadowhall Shopping Centre near Sheffield and the 3.9 million sq ft
offices of the Broadgate Estate in the City of London.


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