Sale of JSD

Sainsbury(J) PLC
19 November 2003





SAINSBURY'S SELLS J SAINSBURY DEVELOPMENTS TO BLUE INVESTMENT FUND LP



J Sainsbury plc has exchanged contracts with Blue Investment Fund LP (Blue) for
the sale of J Sainsbury Developments Limited (JSD), its specialist property
trading and development arm, and associated assets held within Sainsbury's
Supermarkets Ltd. Blue is a joint venture between Schroders Gresham Property
Partners LP and Deutsche UK Property Venture Fund No. 2 Ltd. Catalyst Capital
LLP will asset manage the portfolio.



These assets have been sold for a cash consideration of £168 million, and
include 16 development properties focused on the retail sector, that have a book
value of £167 million.  Five of the JSD development sites, with a value of over
£25 million, have been retained within the Sainsbury's group and will be
developed out or sold separately. Some of the employees of JSD will transfer to
the buyer.  Completion of the transaction, which is subject to minimal
conditionality, will occur on 27th November 2003.



Created by Sainsbury's over ten years ago, JSD has grown into a successful
property trader-developer. The 16 projects are in various stages of development,
ranging from out-of-town retail to in-town mixed-use developments, throughout
the UK. These schemes are mostly unrelated to Sainsbury's store development
programme.



Commenting on the sale, Desmond Taljaard, property director for Sainsbury's
said: 'Going forward we will concentrate our property development activities on
core supermarket developments. JSD no longer fits strategically with the
business as it has emphasised delivering schemes which primarily do not relate
to our supermarkets.'



'Sainsbury's will continue to carry out development of stores and related
properties by using the skills of its in-house Asset Development team. This team
focuses on adding value to the business by maximising opportunities to develop
sites that enhance the Sainsbury's store by way of extension, redevelopment or
re-formatting.'



For enquiries:



Investor Relations:

Lynda Ashdon            [phone]



Media

Tina Christou             [phone]





Notes

1. Sainsbury's has 507 stores in the UK, with more currently in development.

2.In the year to March 2003, JSD made an operating profit of £19 million
representing some

2.5% of group underlying operating profit of £752 million,  (£15m in 2002
compared to £679m of group underlying operating profit).

3. For list of assets included within the sale: See overleaf ...



Assets within JSD Sale:
Property                        Sector                Description
Lemon Quay, Truro               Town Centre Retail    Completed town centre development anchored by Marks &
                                                      Spencer.


Park Street, Newbury            Mixed Use             Major town centre retail and residential opportunity.


Hayes, Lombardy Retail Park     Retail Warehousing    Existing income producing retail park with short term
                                                      redevelopment potential.


Conigre Retail Park, Trowbridge Mixed Use             Major town centre site for medium term open A1 retail
(Ushers Brewery Site)                                 park and residential development.


Union Street, Aberdeen          Town Centre Retail    Two prime retail units under construction with upper
                                                      floor redevelopment potential.


Vastern Court Retail Park,      Retail Warehousing    Open A1 retail park in town centre location, short-term
Reading                                               redevelopment potential.


Blackhorse Way, Horsham         Mixed Use             Part pre-let town centre retail development currently
                                                      under construction.


High Street, Shirley,           Town Centre Retail    Superstore and retail unit short term redevelopment
Southampton                                           scheme.


Ty Glas Retail Park, Llanishen, Retail Warehousing    Part open A1 retail park part let to Marks & Spencer
Cardiff                                               currently commencing construction.


Bretton Shopping Centre,        Retail Warehousing    Second phase of development of district retail park.
Peterborough


Maypole, Birmingham             Mixed Use             South Birmingham suburban location adjacent to new
                                                      Superstore for medium-term retail development.


Alpha 1 & 2, Hams Hall,         Industrial            Two adjacent sites, one mid-construction, on established
Birmingham                                            distribution park.


Solent 2, Whiteley, Fareham     Office                Large cleared site in established location for short/
                                                      medium term office development.


Edinburgh House, Kennington     Office                Newly refurbished self-contained office development with
                                                      car-parking.


Meymott Street, Blackfriars     Office                Development site consisting of a vacant building and car
                                                      park.


Coulsdon                        Industrial            Well located 6 acre site next to Rail Station and next
                                                      to proposed bypass with own approach road.






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