Press Release

THE CROWN ESTATE ANNOUNCES PROPERTY 'SWAP' DEALS WITH AXA AND DERWENT VALLEY

8 August 2006

The Crown Estate today announces two separate swap deals involving seven properties with AXA (Sun Life Unit Assurance Ltd) and Derwent Valley with a combined value of £74 million.

The swap with Derwent Valley saw The Crown Estate buy in the long lease on Morley House, 314 – 322 Regent Street. In exchange for Morley House, The Crown Estate has sold the freehold of Argosy House at 215 - 217 Great Portland Street and Riverwalk House at 157 – 166 Millbank.

In a separate swap deal with AXA, The Crown Estate has acquired the long lease of a block on the Regent Street estate adjacent to Oxford Circus. In exchange, AXA have acquired property at Jordan Hill Business Park in Oxford, 106 Jermyn Street and 108-111 Jermyn Street.

Giles Clarke, Director of Investment and Asset Management at The Crown Estate said: “With the investment market as competitive as it is, we look to leverage our portfolio to achieve our investment objectives. One way we have had success is recognising that as a vendor we still want exposure to property and not just cash. Swap transactions are often complex and these deals reflect a successful combination of imagination and flexibility that have brought rewards for all of the parties involved.

“We believe we have taken advantage of a tight office market to achieve strong values in the disposal of assets that did not fit in with our long term strategy while acquiring interests in other assets which will allow us to add significantly in other areas of our portfolio. Our investment strategy is paying dividends and these two deals show how we are open to business.”