Press Release

THE CROWN ESTATE PURCHASES 50 PER CENT SHARE OF LAND SECURITIES’ PRINCESSHAY SHOPPING CENTRE, EXETER

11 December 2009

The Crown Estate has exchanged contracts on a major purchase to acquire a 50 per cent stake in Princesshay Shopping Centre in Exeter from Land Securities Group PLC for close to £100 million.

Princesshay significantly adds to The Crown Estate’s diversification portfolio of regional, urban properties, which currently comprises thirty-seven assets including offices, industrial estates, retail warehousing and shopping centres.  This follows a number of significant acquisitions for The Crown Estate’s diversification portfolio, including the purchase this autumn of prime Newcastle office development One Trinity Gardens and Stockbridge House from Aviva Investors for £40 million and the acquisition last year of both Bath Road Retail Park, Slough, for £92m, and a 50 per cent share in Crown Point Retail Park in Leeds for £67m.

Paul Clark, Director of Investment and Asset Management at The Crown Estate comments: “This acquisition forms part of a focused diversification strategy to reduce our central London weighting and we are delighted to be involved with such a high quality, sustainable, city centre scheme.  Joint ventures like this are increasingly attractive for us, particularly with partners like Land Securities who share our long-term approach to asset management.”

The 530,000 sq ft city centre retail scheme was completed in September 2007. Anchored by Debenhams, the scheme comprises over sixty retail units including fashion retailers Topshop, Zara, Reiss, Next, Cult and All Saints as well as restaurants La Tasca, Wagamama, Cafe Rouge and Giraffe.

Commenting on the sale, Richard Akers, Managing Director Retail for Land Securities said: “The sale was agreed in July as one of the last disposals in our retail sales programme.  We will continue to manage the retailer relationships established in Exeter and will use our development expertise to lead any future development activity for the centre.”

The centre has been the recipient of many accolades including:

• Winner of the BCSC Supreme Gold Award and BCSC Gold Award 2007
• Winner of Retail Week ‘Shopping Location of the Year’ 2008
• Winner ICSC Award – Best Medium Sized Shopping Centre in Europe

The Crown Estate continues to pursue its stated strategy to reduce dependence on the performance of non-core central London holdings - from a high of 80 per cent to 60 per cent – in order to grow the diversification portfolio, whilst continuing to invest in its core London portfolios of St James’s and Regent Street.

The Crown Estate was advised by Griffiths Eccles.