Acquisition

Slough Estates PLC
08 December 2005



                              SLOUGH ESTATES AGREES
                          MAJOR ACQUISITION IN GERMANY

Slough Estates International ('SEI') has agreed to acquire a substantial
logistics and ancillary office portfolio and a major development land bank from
KarstadtQuelle AG in a sale and leaseback transaction - at a gross acquisition
price of €163.2m (including acquisition costs). Subject to necessary approvals,
completion is anticipated within a few weeks.

The portfolio comprises 260,000 m2 of let warehouse accommodation, 63,000 m2 of
let office accommodation and 53 hectares of development land, producing a total
rent income of €13.1m per annum. The main development properties are prime
strategic sites at locations in Berlin, Hamburg, Hanover, Dusseldorf/Essen and
Alzenau - all with good potential for the provision of business park or logistic
facilities.

KarstadtQuelle AG and its subsidiary companies have entered into long-term
leases on those assets currently being occupied for their operations.
KarstadtQuelle AG is one of Germany's largest retail conglomerates, ranging from
large department stores to mail order. It had gross sales of €13.4bn in 2004 and
had 92,500 employees. KarstadtQuelle is selling these properties as part of a
Groupwide financial restructuring. Linked to this transaction, DHL - with whom
SEI has relationships at a range of its existing sites in Continental Europe -
has taken over contracts to run the logistics at five of the KarstadtQuelle
operations.

SEI's Managing Director in Europe, Walter Hens, said:

'This acquisition provides significant income, much of it secured until 2017,
and unlocks substantial development opportunities.

It combines the strength of our expertise as an established developer in the
industrial market in Germany with a strong cash flow generated from the leased
back element. Our General Manager in Germany, Dr Udo Titz, and his team now have
a major opportunity to take our existing German operations onto another level.'

Ian Coull, Slough Estates' Chief Executive, added:

'This transaction plays to our strengths and builds on our growing presence in
this region. It is an excellent fit with our strategy and takes our focus on
flexible business space further into Continental Europe, in particular
reinforcing and building on our position in the key German market.'

This deal is a quantum leap forward for SEI's Dusseldorf based German operations
- existing interests in Germany include a trading portolio valued at
approximately €100m as at the end of the first half of 2005. The scale and the
development focus of this transaction therefore bring SEI's German portfolio
firmly into line with its wider European strategy. Existing German sites include
facilities in Neuss, Monchengladbach, Frankfurt, Kapellen, Ratingen, Dormagen,
Hamburg and Krefeld.

Elsewhere in Continental Europe, SEI's main interests are in Brussels, Paris and
Amsterdam. SEI's investment assets in Belgium and France were valued at £186m
and £107m as at the time of its 2005 interim results. During 2005 SEI acquired a
majority shareholding in Dutch based Mainland JV - including a development
pipeline of 130,000 m2. In November this year the JV partners subsequently 
bought a major site close to Schiphol airport for €16.5m, providing a further 
100,000 m2 development opportunity.


Slough Estates                 Maitland 
Michael Waring                 Colin Browne
07775 788 628                  Liz Morley
                               020 73795151


Notes to editors

Slough Estates plc
(Listed on the London Stock Exchange - stock code: SLOU.L)
www.sloughestates.com

Slough Estates is a leading provider of flexible business space in business
parks in Western Europe and North America, with over 1500 customers occupying
approximately 3m square metres of business space. Slough Estates' properties are
in suburban locations in close proximity to the main business centres, where
there is long term demand for business accommodation to serve these key economic
regions.

The company's main activities are currently based around London, Brussels,
Paris, Dusseldorf, Amsterdam, San Francisco and San Diego and the company
continues to develop new business parks with the long term objective of building
shareholder value and enhancing its reputation for quality buildings offering
excellent value to customers. www.sloughestates.com

At its interim results this year Slough Estates highlighted increased
development starts in Europe with 5,509 sq m completed in H1, 64,029 sq m under
construction at the end of the first half of 2005 and with 56,112 sq m of
possible starts in the second half of 2005.








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