REIT Regime Notification

Local Shopping REIT (The) PLC
10 May 2007


10 May 2007

The Local Shopping REIT plc

The Local Shopping REIT plc ('the Company') announces that, in accordance with
section 109 (1) of the Finance Act 2006,  it has today issued notice to HM
Revenue & Customs ('HMRC') that the Company will enter the United Kingdom REIT
regime  with effect from 11 May 2007.  The Company currently calculates that the
value of its property assets at the time of  entry will be £215.4m, giving rise
to a REIT entry charge of £4.3m.

The Company anticipates that it will not opt to pay the entry charge by
installments, in view of the interest rate  applicable to deferred payments, and
will therefore pay the entry charge as a corporation tax payment for the period 
ending 30 September 2007.

The Company confirms that its Articles of Association are already consistent
with HMRC guidance for the REIT regime.

Enquiries:

Bill Heaney
Company Secretary
020 7187 4444

END


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