Final Results

London & Assoc Properties PLC
12 March 2001


FOR IMMEDIATE RELEASE

12th March 2001

                     LONDON & ASSOCIATED PROPERTIES PLC:

              PRELIMINARY RESULTS FOR YEAR TO 31ST DECEMBER 2000

HIGHLIGHTS

London & Associated Properties is a focused retail property investment company
with more than two-thirds of its £100m portfolio comprising five strategic
shopping centres located in town + city centres offering considerable scope
for growth. Approximately 80% of its annual rent roll is derived from major
multiples.

  * Gross rental income rises 11% to £9m while ERV advances to £11m
  * Net Asset Value per share increases by 5% to 60.5p
  * Group properties, inc JV and associate, now totals £113m + generates
    rental income of £9.6m (ERV of £12.5m)
  * Increase in pre-tax profits of £2.17m (1999: £2.1m) achieved after £
    0.83m of higher interest costs
  * Recommending final dividend of 1.2p a share - 9% increase
  * Orchard Square in Sheffield - acquired in July 1999 - delivered 25%
    increase in market rents
  * Commenting on the results Chairman Michael Heller said: 'I am pleased to
    be able to report another year of sound progress during which demand for
    space in our shopping centres has been at the strongest I can recall. This
    demand has been translated into record rental levels being achieved at all
    our major centres.....Our strategy continues to deliver shareholder value
    from an intensive management programme of our retail property portfolio
    and therefore I view the future with confidence.'

                                    -more-

Contact:                  London & Associated Properties Plc.
                          020 7415 5000

Michael Heller, Chairman, Robert Corry, Finance Director or John Heller,
Director

Bankside Consultants      020 7220 7477

Baron Phillips


CHAIRMAN'S STATEMENT

I am pleased to be able to report another year of sound progress during which
demand for space in our shopping centres has been at the strongest I can
recall. This demand has been translated into record rental levels being
achieved at all our major centres and an 11% uplift in gross annual rental
income to over £8.8m. Further, estimated rental values, reflecting the
underlying growth potential of our properties, have increased to some £11m,
which is a particularly creditable performance against a generally poor
background for the retail property sector.

This good demand is a reflection of the key locations of our major centres and
our policy of investing in towns with strong local day-to-day catchments.
These centres appeal to the type of competitive retailers that trade well
meeting demand from the modern value conscious consumer.  The size, location
and nature of our centres appeal strongly to these retailers who are expanding
rapidly and gaining significant market share at the expense of longer
established and middle market retailers.  During 2000 we let more space to
value retailers than ever before and names like Peacocks and Savers are
becoming commonplace in our major centres.

Equally encouraging has been the increase in the Group's net asset value per
share achieved during a period of generally softening yields for retail
property. Following an independent valuation of our property investment
portfolio, as at 31st December 2000, I can report that London & Associated
Properties' Net Asset Value per share on a fully diluted basis rose 5% to
60.5p from 57.6p. This increase also follows an unusually high scrip issue
last year as more shareholders opted for shares than for cash dividends.


At the same time the value of LAP's net assets rose 7% to £50m with a gross
property portfolio valuation of £100m. The total value of Group properties,
together with those owned by our associate company Bisichi Mining plc and
those of our joint venture Dragon Retail Properties, amounts to £113m.  This
generates a Group rental income of some £9.6m, with an estimated rental value
of some £12.5m.

Pre-tax profits for the 12 months to 31st December 2000, derived primarily
from rental income, increased to £2.17m from £2.10m.  This figure was achieved
after an increase in interest payable of some £0.83m over the course of the
year.  We also reinvested approximately £1.7m in improvements to our key
shopping centres to help underpin both future values and income streams.

The Board is recommending a final dividend of 1.2p per share, a 9% increase
over last year's payment, reflecting our confidence in the future. The final
dividend will be payable on 13 July 2001 to those shareholders on the register
at 9 March 2001. I am pleased to report that over the last five years the
annual dividend has increased at a compound rate of 11% and this year's
dividend will reflect a yield of 4.3% on today's opening share price of
27.75p.

At the balance sheet date, gearing net of listed investments was a comfortable
98%, and with more than half our long-term borrowings at variable interest
rates we are now benefiting from the continuing downward pressure on interest
rates.  Interest payable is currently twice covered by rental income.

LAP invests exclusively in shopping centres and malls that are located in town
and city centres and almost 80% of our annual rent roll is derived from major
multiples. Two-thirds of our property investment portfolio, by value,
comprises five strategic shopping centres all of which offer considerable
opportunities for growth.


We are constantly looking to expand our larger centre portfolio as well as
investing in our existing centres. Despite the large number of shopping
centres that became available during 2000, we were unable to identify a major
retail investment that met our stringent criteria.  As I mentioned above we
invested £1.7m in some of our existing centres such as Christchurch, where we
acquired two adjacent shop units enabling future extension of the centre.

We have invested considerable time and effort at Orchard Square, Sheffield
which we acquired in July 1999. We are now reaping the rewards of our
intensive management of this centre and have achieved a 25% increase in market
rents by creating the quality and size of unit that modern retailers require.
This rental uplift is starting to flow through and will impact next year as we
begin the rent review programme.

Dragon Retail Properties, our 50% owned joint venture, also purchased for £2m
a block of four shops in Brighton's principal shopping street. We have already
identified opportunities to increase the value of this investment and we
expect to achieve higher rental levels than those estimated at the time of
purchase.

Shareholders are aware that LAP owns 42% of Bisichi Mining, which also owns a
fully let retail property portfolio that we manage on its behalf. Bisichi's
South African coal mining subsidiary is now operating profitably and we
anticipate that our investment in this business will make a much-improved
contribution to our profits in the current year.

As we continue to focus on larger centres with greater opportunities for
capital and rental growth we are looking to dispose of some of our smaller
properties. To that end the Group has sold, or exchanged contracts to sell,
properties with a combined value of £1.3m during the year.



Our results reflect my colleagues' hard work and on behalf of both
shareholders and the Board I would like to express my sincere thanks to all of
them.  Our strategy continues to deliver shareholder value from an intensive
management programme of our retail property portfolio and I therefore view the
future with confidence.

Michael Heller

Chairman
                                12 March 2001


PROPERTY REPORT


As indicated in the Chairman's statement, demand for space in our principal
shopping centres is running at record levels and this has been translated into
our highest ever contracted annualised rent roll of £9.2m, an 8% advance on
last year. At the same time the estimated rental value of our five major
centres is now in excess of £6.5m an increase of 7% over last year's level
again reflecting the strength of tenant interest, particularly among retailers
aiming at value-conscious consumers.

We continue to focus management time and resource on our larger centres,
comprising approximately two-thirds by value of our total portfolio, where we
see the greatest opportunities for growth over the medium term.  Our five
major shopping centres as a whole produced above average growth and in
particular Orchard Square in Sheffield performed exceptionally well with a
near 12% rise in value over the year.  The growth of these centres was driven
by increased rental values and not by yield.


ORCHARD SQUARE - SHEFFIELD

Our best performing property, the prime 117,000 sq ft Orchard Square Shopping
Centre in Sheffield has already responded well to our intensive management
approach with open market Zone A rents for new lettings within the scheme
achieving between £65 and £70 per sq ft, an increase of 25% over those rents
passing at the time of acquisition. This takes Orchard Square's total
potential rent roll to £1.9m compared to £1.7m a year at the time of
acquisition in July 1999.

The increasing strength of Orchard Square's tenant appeal is best seen by a
pre-letting to the fashion shoe retailer Schuh which is relocating from
Fargate, long regarded as Sheffield's prime retail pitch. Schuh is paying £
83,500 pa for a newly created 2,000 sq ft unit reflecting demand for larger
units at Orchard Square.

For the first time since Orchard Square was completed 10 years ago all the
first and second floor space has been let with strong demand particularly from
higher value specialist retailers.   I am also pleased to report that we have
achieved rental growth in the 12,700 sq ft of office space at the front of the
centre where we took a surrender of a lease on 2,400 sq ft of space and re-let
the accommodation to a multinational employment bureau at a rent 12% higher.

Additionally there are strong expressions of interest for larger shops within
Orchard Square from national retailers and we are exploring the creation of
additional space through unit extensions and the amalgamation of existing
shops. We are confident of completing a number of these projects over the next
year or so and I look forward to reporting on progress soon.


KINGS SQUARE, WEST BROMWICH

We have had another excellent year at Kings Square where, since the year end,
we have established record Zone A rent levels of £62.50 a sq ft. The full
impact of this will be felt during the course of the current year as there are
a number of rent reviews to be negotiated.

Last year I reported that we were dividing a large shop into three smaller
units. The first unit was let as soon as it became available to a national
jewellery chain at rent of £33,000 a year, 10% higher than our original
estimates. The remaining units are now available and one is under offer at £
35,000 pa with strong interest in the last shop.



SAXON SQUARE, CHRISTCHURCH

The strong demand for units in Saxon Square that we noted last year has
continued during 2000 and the latest Zone A rent agreed has been at £43 a sq
ft compared to £41 a sq ft in the previous year. Demand for units within the
centre continues to be strong and we are exploring the possibility of creating
substantial extensions to the centre in order to satisfy retailers
requirements to be represented here. As part of that strategy we acquired two
shop units adjacent to Saxon Square. We are considering the best configuration
to maximise value and initial marketing has already led to offers for space at
levels substantially above existing rents.


THE MALL, DAGENHAM

We accepted the surrender of two units to the front of the Mall and re-let the
entire space to First Sport, the national chain of sportswear retailers, at a
rent 10% higher than in the previous configuration. Its position at the Mall's
entrance is proving to be a great benefit to the scheme as a whole.
Additionally Claire's Accessories have also taken a lease assignment in the
Mall, and an assignment to a further national fashion chain is being
finalised.

These deals are particularly encouraging as they confirm our own view that the
much-publicised closure of the Ford motor plant has had a minimal effect on
Dagenham's local economy.


BRUNEL CENTRE, BLETCHLEY

I am pleased to report that for the first time in five years the main
concourse is now fully occupied, following a letting to the drug store chain
Savers at a record rent per square foot. This latest letting will help to
underpin rental growth right across the centre.

We have received two offers for a 20,000 sq ft re-designed building at
Wetherburn Court, our adjacent development site.  This follows the rejection
of our planning application to develop a large unit for Woolworth on part of
this site.  The current plans show an improved design of the proposed building
and feedback from the planners has been positive.

Elsewhere in our portfolio our joint venture, Dragon Retail Properties
Limited, acquired a block of four shops in Central Brighton for £2m. At the
time of purchase it was estimated that current rental values were around £80
per sq ft but since the acquisition recent lettings in the immediate vicinity
have achieved greater rental levels than this. For example, a shop directly
opposite, was recently let at £105 per sq ft.  This shows our units have
significant reversionary potential.

Despite the generally negative sentiment towards retailing we achieved Group
sales of £1.3m of smaller investments where we decided that opportunities for
growth in the medium term were limited. We intend to continue this strategy
during the course of the current year as we seek to rationalise the portfolio
and focus resource on our larger centres. Interest levels have been good so
far and we anticipate achieving more sales during 2001.


John Heller                Executive Director

Mike Dignan                Director of Property             12 March 2001



FINANCE DIRECTOR'S REPORT

The Group remains in a strong financial position with all its main debt having
at least 8.5 years unexpired.  It currently has adequate resources available
for anticipated levels of expenditure and to enable further acquisitions when
appropriate.

The Group has not refinanced any of the long-term debt during the year.  Apart
from the unsecured overdrafts, the portfolio is financed by £47.8m of
long-term loans, the shortest of which is repayable in 2009, with 53.2% at
variable rates of interest.  We have continued to monitor the long term fixed
rate debt market and it remains our stated policy to fix rates for the longer
term when we consider it to be advantageous.

It also remains the Group's intention not to repay any of the fixed rate term
debt prior to its maturity.  However, an adjustment under FRS 13 would have a
notional impact of 4.73 pence per share, or £3.67m.

Gearing, net of listed investments, is now 98% (1999: 102%), a level at which
your Board continues to feel very comfortable.  Most importantly gross rental
income covers interest payable at 1.96 times (1999: 2.12 times).

During the year there was a decrease in net liquid cash of £1.16m (1999: £
0.88m decrease).  This is after financing property purchases of £1.66m from
existing resources.  These purchases include two additional shops in
Christchurch, adjacent to our centre, for £0.79m, and the refurbishment and
extension of certain units within the portfolio, details of which have been
outlined in the property review.

Income, net of property and directly attributable overheads, increased during
the year by 14% to £6.0m. This is in part due to a full year's income from
Orchard Square in Sheffield, but also reflects rental growth achieved across
the existing portfolio.

The management of the property portfolio, which is carried out entirely in
house, requires a team of people and the cost of the team is shown in the
attributable overheads.  These costs are tightly controlled and monitored.
However this year shows a slightly higher than expected increase due to the
full rent being charged to the  Company on its own offices, as required under
the accounting treatment of SSAP 21.

Interest costs have increased by £0.83m during the year, which is due to both
a full year's financing charge for Orchard Square and the increase in the
average LIBOR rate payable on the variable portion of our debt for the year.

Our tax charge was 15.4% (1999: 25.3%).   This lower tax charge for the year
reflects the capital allowances from Orchard Square, which were not taken in
1999.  We should continue to reap the benefit from the capital allowances.

As a result of the growth in the property portfolio and the retained profits,
the Group net assets, including the listed investments at market value, have
increased to £49.7m (1999: £46.6m), an increase of 6.8%.

Our Associate Company, Bisichi Mining PLC, in which we hold a 42% stake,
reversed the losses of 1999 and reported a pre-tax profit of £82,000 for the
year.  This turnaround has resulted from the positive management action taken
at its coal mining subsidiary.

Dragon Retail Properties, our joint venture with Bisichi, had another strong
year with net assets growing by a further 19.4%.  It has purchased an
additional block of four shops in Brighton during the year.

Our equity portfolio remains strong and continues to be invested in major UK
listed companies where the shares are highly liquid.  In common with the stock
market in general the value of the portfolio fell back during the year to £
3.3m (1999: £3.8m), although it again contributed over £0.2m in profits.

Robert Corry      Finance Director            12 March 2000