Press Release

THE CROWN ESTATE ACQUIRES SHARE OF BLUEWATER, KENT AND TOUCHWOOD COURT, SOLIHULL, SHOPPING CENTRES

18 September 2006

The Crown Estate, advised by CB Richard Ellis Financial and Dechert, has for the first time acquired property via units in a limited partnership. This is significant as it is the first time The Crown Estate has bought a share of a limited partnership, traditionally having only owned property directly. This demonstrates The Crown Estate is now looking at other types of property and ownership structures.

The Crown Estate has acquired a share of the Lend Lease Retail Partnership (LLRP) for approximately £38 million.

The deal gives The Crown Estate an equity interest in both Bluewater Shopping Centre in Kent, one of the premier retail destinations in Europe, and Touchwood Court Shopping Centre in Solihull, an excellent regional centre in the Midlands.

The Crown Estate’s share amounts to almost 5% of LLRP and has been acquired from Henderson Global Investors. The forecast equivalent yield is approximately 5% per annum.

Giles Clarke, Director of Investment and Asset Management at The Crown Estate, said: “This is a very exciting acquisition for The Crown Estate and has come as a result of our looking imaginatively at how we invest in our portfolio. Acquiring an equity interest through LLRP has given us access to prime assets that would not have been accessible through a more direct route. We believe that investing in the very best retail assets will provide strong returns over the long-term and complement our holdings in central London and elsewhere.

“Last week we exchanged on a sale of Hobhouse Court, a mix of office and retail space on Pall Mall, central London. The price we have achieved reflects values that I believe are less sustainable than the price we have paid for our LLRP interest.”

Jim Yates, Head of the Regional Portfolio at The Crown Estate, commented: “Bluewater and Touchwood Court are two of the best shopping centres in the UK and our partnership share is an excellent acquisition which will enhance the balance and diversity of our retail portfolio.”