Retail Joint Venture

Land Securities Group Plc
09 June 2004



9 June 2004



LAND SECURITIES GROUP PLC ('Land Securities')



LAND SECURITIES AND DELANCEY FORM LONDON RETAIL PARTNERSHIP



Land Securities Group PLC and Delancey announce today the creation of the Metro
Shopping Fund Limited ('the Partnership'), a joint venture that will initially
comprise central London shopping centres and shops from both companies.



Initially, the 50/50 Limited Partnership will own over 420,000 sq ft (39,000 sq
m) of retail space, valued at approximately £270m.  The properties include
Delancey's Shopstop @ Clapham Junction, N1 Islington and Victoria Place, SW1 and
Land Securities' holdings in Notting Hill Gate W11.



The assets currently produce gross rents of circa £17m per annum from over 200
tenancies. Land Securities and Delancey have created Metro Shopping Fund
Management Limited, a joint venture company with dedicated management to provide
asset, corporate and property management services to the initial four
properties.



The Partnership, which will be geared, will enable the partners to maximise the
long-term value of the properties, attract and service high quality tenants and,
in due course assess their development potential.  It will also seek to acquire
further retail assets and the addition of third party investors in the future.



Mark Collins, Chief Executive of Portfolio Management, Land Securities
commented, 'Land Securities enjoys many successful partnerships. By joining
forces with Delancey, we will be able to maximise the long-term value of the
assets, leveraging economies of scale and enhancing value creation
opportunities.  The Partnership will also enable us to acquire further retail
assets in this competitive market.'



Jamie Ritblat, Chief Executive of Delancey, said, ' We look forward to working
in partnership with Land Securities to build up a substantial central London
retail portfolio. Delancey has established a strong reputation for its
innovative approach to asset management and a long track record of successful
joint ventures. We are delighted to be able to bring these strengths together
with Land Securities, who share our vision for a major central London retail
fund providing benefits to tenants and investors alike.'



Land Securities was advised by Slaughter & May and Knight Frank.  Delancey was
advised by Olswang, Jones Lang LaSalle and DTZ. The Partnership will be advised
on an ongoing basis by Jones Day with Knight Frank acting as valuers.



- Ends -





For further information, please contact:



Emma Denne

Land Securities

[phone]



Jamie Ritblat/Sally Hands

Delancey

[phone]



Stephanie Highett/ Dido Laurimore

Financial Dynamics

[phone]





Editor's 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.



Delancey



Delancey provides real estate related advisory and management services to a
variety of clients in respect of a broad range of assets varying from individual
property investments and developments throughout the UK to corporate
investments. The Group's investment strategies are based upon four fundamental
criteria: of underlying quality of assets, liquidity, provision of stable
cashflows and capital growth potential.




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