Acquisition

Land Securities Group Plc
12 February 2007

12 February 2007

Land Securities Group PLC ('Land Securities')


LAND SECURITIES TRILLIUM ACQUIRES ACCOR HOTEL PORTFOLIO



Land Securities Group PLC announced today that its property partnership
business, Land Securities Trillium ('LST'), has agreed heads of terms to acquire
a portfolio of hotels from Accor S.A. ('Accor'), the fourth largest hotel
operator in the world.  The portfolio comprises 30 hotels, representing
approximately a third of the hotels currently owned or operated by Accor in the
UK.  The transaction consideration is £439m with a commitment to contribute
around £35m of capital over four years towards property improvement works.
Rental income for each hotel is based on an agreed percentage of the hotel's
annual turnover.  Based on 2006 performance, the portfolio would have generated
annual gross rent in excess of £27m per annum.



LST will lease each hotel back to Accor on 84-year leases, which will include 12
year rolling breaks, while retaining responsibility for the lifecycle
maintenance of the core fabric of the buildings. The 30 hotels, which are
operated under the IBIS two-star and Novotel three-star brands, are
predominantly located in established city centre locations across the UK, with a
weighting towards London. It is expected that this portfolio will be included in
the REIT qualifying portfolio.



Ian Ellis, Chief Executive, LST, said: 'We have had a tremendous start to 2007
with over £2bn committed to growing our business.  Following on from the
completion of the SMIF acquisition and our preferred bidder status on the
Defence Training Review, this acquisition demonstrates the flexibility of our
business model.  It also represents the first step in the development of a
long-term relationship with Accor as its UK property partner, helping them to
achieve their core objective of expanding their share of the UK hotels market.



'The partnership model, which is exemplified by this transaction, advances Land
Securities' strategy of providing property solutions to leading corporations and
government institutions.'



Jacques Stern, Chief Financial Officer, Accor SA, added: 'Accor are pleased to
be entering a partnership with a leading player in the UK property market. This
partnership, as part of Accor's real estate management strategy, will allow
Accor to accelerate its expansion plan in the UK and de-risk its operational
structure by moving to a fully variable lease arrangement.'



Accor were advised by NM Rothschild & Sons.



For further information, please contact:
Ian Ellis                                                Stephanie Highett
Land Securities Trillium                                 Financial Dynamics
T [phone]                                    T [phone]





Notes to Editors



Land Securities Trillium

Part of the Land Securities Group, Land Securities Trillium is one of the most
established and innovative names in property outsourcing. We focus on
understanding our customers' business and property requirements and meeting them
through excellent service and innovation.  We manage and provide services to
numerous commercial properties nationwide, for a growing number of companies and
government departments. These activities sit alongside Land Securities'
investment portfolio, worth many billions of pounds, which includes a vast range
of shopping centres and retail parks as well as London landmark buildings. We
are also involved in a major urban community development programme.






                      This information is provided by RNS
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