Great Portland Estates PLC 21 February 2008 PRESS RELEASE Great Capital Partnership in major West End property swap The Great Capital Partnership ("GCP") announces that it has completed a swap transaction with The Crown Estate ("the Crown") involving 580,000 sq ft in aggregate of property in central London which had a value as at 31 December 2007 of £357.6 million. GCP is a 50:50 central London joint venture between Great Portland Estates plc ("GPE") and Liberty International subsidiary Capital & Counties Ltd ("C&C") and is managed by GPE. In this transaction GCP has swapped three of its properties in exchange for three new leasehold properties, one freehold and more favourable terms on a number of its other leaseholds. This major transaction unlocks both immediate marriage value and future development opportunity for both GCP and the Crown. It is made up of three parts, the details of which are set out below. 1. The acquisition by GCP of the following interests from the Crown: The freehold interest in 26/40 High Street Kensington, W8. The building was previously held leasehold by GCP with 104 years remaining paying a headrent to the Crown of 5% of gross rental value ("headrent gearing"). 150 year leasehold interests in the following properties where GCP had no previous interest: o 98 Portland Place, W1; o 7-8 Park Crescent & 1-15 Park Crescent Mews, W1; and o 211 Great Portland Street, W1. 2. The extension and improvement of GCP's existing leasehold interests from the Crown as follows: GCP and the Crown have regeared various leasehold interests extending their length, reducing the rent paid to the Crown and loosening various operational, user and development restrictions which will enable GCP to significantly refurbish and redevelop the properties over time. GCP has been granted new leases for 125 years, up from the old average unexpired terms of 79 years. The new headrent gearing is 4%, down from a weighted average of 12%: o Walmar House, 288-300 Regent Street, W1; o Spirella House, 266-270 Regent Street & 249 Oxford Street, W1; o Regent Arcade House, 252-260 Regent Street & 19/27 Argyll Street, W1; o Carrington House, 126-130 Regent Street & 36-40 Warwick Street, W1; and o 100 Regent Street & 31-39 Glasshouse, W1. GCP has been granted new leases for 150 years up from the old term of 74 years, at a similar nominal ground rent and now allowing residential development at: o 10/12,13/14,16/28 Park Crescent, W1; and o 92/96 & 77/83 Portland Place W1 3. The transfer by GCP to the Crown of the following assets: The freehold interest in 21 Sackville Street, W1 where the Crown had no previous interest; and The leasehold interests in the following properties where the Crown already had the freehold: o Victory House, 99-101 Regent Street, W1; and o Kendal House, 203 Regent Street & 1 Conduit Street, W1. These transferred assets were valued at £61.1 million at 31 December 2007 and produced an annual rent, net of ground rents of £2.6 million per annum. A schedule showing the various holdings and interests along with the effect on GCP's net rental income resulting from the transaction is set out on the attached schedule. To view the attached schedule please cut and paste the below link into your web browser: The retained, improved assets were valued by CB Richard Ellis at £378.3 million as at 31 December 2007. After transaction costs estimated at £2.7 million, this valuation implies an immediate net surplus of £18.0 million over GCP's opening position principally due to the improved terms of the longer leases. The retained assets, all located in prime West End positions are currently let at an average office rent per sq ft of only £29.37 per sq ft and, as at 31 December 2007 had an average rental value of £42.34 per sq ft . Although GCP's aggregate net rental income will, initially, fall by £1.5 million per annum, the retained assets' improved interests will provide GCP with a pipeline of exceptionally located refurbishment and redevelopment options enabling it to generate an enhanced income return over the medium term. Toby Courtauld, Chief Executive of GPE said: "This is an important transaction for GCP in that it not only creates value today, but it also improves our ability to reposition the retained properties over time thereby improving their growth prospects." Contacts: Great Portland Estates plc Toby Courtauld Chief Executive 020 7647 3042 Robert Noel Property Director 020 7647 3043 Finsbury Gordon Simpson 020 7251 3801 Capital & Counties Ian Hawksworth Managing Director 020 7887 7041 Gary Marcuccilli Director 020 7395 2751 The Crown Estate Andrew Payne Communications Manager 020 7851 5271 Notes for Editors LIBERTY INTERNATIONAL PLC is the UK's third largest listed property company and a constituent of the FTSE-100 Index of the UK's leading listed companies. Liberty International converted into a UK Real Estate Investment Trust (REIT) on 1 January 2007. Liberty International owns 100 per cent of Capital Shopping Centres ("CSC"), the premier UK regional shopping centre business, and of Capital & Counties, a retail and commercial property investment and development company. At 31 December 2007, Liberty International owned £8.6 billion of properties of which UK regional shopping centres comprised 75 per cent and retail property in aggregate 88 per cent. Shareholders' funds and minority interests amounted to £4.7 billion. Assets of the group under control or joint control amounted to £11.0 billion at that date. CAPITAL SHOPPING CENTRES has interests in 14 UK regional shopping centres amounting to 12.6 million sq ft in aggregate including 8 of the UK's top 21 regional shopping centres with a market value of £6.5 billion at 31 December 2007. CSC's largest centres are Lakeside, Thurrock; MetroCentre, Gateshead; Braehead, Renfrew, Glasgow; The Harlequin, Watford; and Manchester Arndale. In addition, CSC has three major development projects in progress or with planning permission in Cardiff, Newcastle and Oxford. CAPITAL & COUNTIES owned assets of £2.2 billion at 31 December 2007 amounting to 7.2 million sq ft in aggregate. Capital & Counties had £664 million invested in the Covent Garden area including the historic Covent Garden Market, and £353 million in Central London, primarily through the Great Capital Partnership, a joint venture with Great Portland Estates plc. Capital & Counties acquired 50 per cent of EC&O Venues (Earls Court and Olympia Group) in 2007 for a sum that valued the assets at approximately £375 million. In addition, Capital & Counties has interests in the USA amounting to £381 million (2.7 million sq ft), predominantly comprising retail assets in California, including the 856,000 sq ft Serramonte Shopping Centre, Daly City, San Francisco. GREAT PORTLAND ESTATES plc is a central London investment and development company and a constituent of the FTSE 250 index. It aims to deliver superior returns to shareholders through active management, the application of development skills to create value and the maximising of equity returns through efficient capital structuring and flexible financing. GPE converted into a UK Real Estate Investment Trust (REIT) on 1 January 2007. At 31 December 2007 GPE's portfolio, including its share of joint ventures, was valued at £1,699 million of which 81% was in the West End and 19% in the City and Southwark markets. Great Capital Partnership was formed in April 2007 and is the third joint venture for GPE following the Great Victoria Partnership, formed with Liverpool Victoria Friendly Society in January 2005 and the Great Wigmore Partnership formed with Scottish Widows Investment Partnership in July 2006. This press release includes statements that are forward-looking in nature. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Liberty International PLC and Great Portland Estates plc to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Any information contained in this press release on the price at which shares or other securities in Liberty International PLC or Great Portland Estates plc have been bought or sold in the past, or on the yield on such shares or other securities, should not be relied upon as a guide to future performance. This information is provided by RNS The company news service from the London Stock Exchange