New Joint Venture

British Land Co PLC
12 January 2001


BRITISH LAND AND GAZELEY PROPERTIES JOIN FORCES

The British Land Company PLC and Gazeley Properties Limited have formed a
50/50 joint venture company to purchase and develop two sites - located in the
Thames Valley and the West Midlands - totalling approximately 32.4 hectares
(80 acres).  The intention is to develop primarily distribution and industrial
accommodation and it is anticipated that the sites will have a combined end
development worth in excess of 
£120 million.

The new company, BL Gazeley Limited, has purchased the 14.6 hectare (36 acre)
Colthrop Mill site in Thatcham, near Newbury, for around £17 million having
identified the opportunity to acquire one of the very few Thames Valley sites
capable of accommodating large footprint industrial buildings close to M4,
between the M25 and Swindon. The site will either be developed for in excess of
65,030 sq m (700,000 sq ft) of industrial/distribution accommodation, on a plot
by plot basis with buildings generally in excess of 9,290 sq  m (100,000 sq ft),
or alternatively as a single pre-let distribution unit of around 61,314 sq m
(660,000 sq ft).  Strong tenant interest for both proposals has already been
identified.

In Redditch, the joint venture has purchased 17.8 hectares (44 acres) of
undeveloped land at the Ravensbank Business Park for around £12 million from
Celexa.  Outline planning consent exists for up to 68,282 sq m (735,000 sq ft)
of industrial/distribution and office accommodation.  The site and the
individual plots are already fully serviced and ready to be developed.

Again, there is encouraging tenant demand and BL Gazeley is pleased to
announce that a pre-let of 106,835 sq m (115,000 sq ft) has been agreed with S
P Group Limited which is to take a 20 year lease at a base rent of £60.28 psm
(£5.60 psf) with the potential to take on additional expansion land in the
future.  Work on site has already commenced and practical completion is
expected to be in April 2001.

FPD Savills acted for the joint venture in the purchase of Ravensbank and is
to be retained as letting agent for the scheme along with Brown Harknett.  DTZ
Tie Leung acted for SP Group Limited.  Holley Blake acted on the acquisition
of Thatcham and has been retained as letting agent.


Contacts

The British Land Company PLC:   John Ritblat, Chairman
                                Tel: [phone]
                                                     

John Weston Smith, Finance Director                                           
                                Tel: [phone]