Great Portland Estates PLC 19 October 2006 Great Portland expands in Hanover Square and on Oxford Street 19 October 2006 Great Portland Estates plc ("GPE") announces, in separate transactions; A West End property swap with The Prudential Assurance Company Ltd ("Prudential") with a combined value of £86.9 million. GPE has bought 65/71 New Bond Street, W1 and 192/194 Oxford Street, W1 from Prudential for a total of £51.6 million. GPE has sold 293/295 Oxford Street and 14 Hanover Square, W1 to Prudential for £35.3 million. The balance of £16.3 million will be settled in cash by GPE. The acquisition of 20 Hanover Square from a private investor for £15.0 million. Put together with recent acquisitions, these transactions provide GPE with two major West End holdings as illustrated on the attached map. http://www.rns-pdf.londonstockexchange.com/rns/6922k_-2006-10-18.pdf In the property swap, the two acquired holdings together provide 57,400 sq ft of which 27,300 sq ft is retail space with 30,100 sq ft being office space. The properties are multi-let and produce a current rental income of £2.6 million per annum with a rental value estimated at £2.9 million per annum. The property sold (293/295 Oxford Street and 14 Hanover Square) comprises 26,600 sq ft of which 7,100 sq ft is retail space and 19,500 sq ft is office space and adjoins an existing Prudential holding. The building was refurbished by GPE earlier this year and the office lease restructured with solicitors Harbottle & Lewis increasing the rent and extending the lease term certain to 2017. The office and four retail tenants produce a current rental income of £1.7 million per annum with a rental value estimated at £1.8 million per annum. 20 Hanover Square comprises 23,100 sq ft of offices let to Knight Frank at an annual rent of £0.5 million per annum with a rental value estimated at £0.9 million per annum. Together with 65/71 New Bond Street and the adjoining properties at 18/19 Hanover Square, purchased in August, GPE has now assembled an important 1.2 acre land holding bounded by Hanover Square, Tenterden Street and New Bond Street providing the Group with a healthy income return and multiple future development opportunities. The purchase of 192/194 Oxford Street combines with 184/190 Oxford Street acquired in September last year to create a wholly owned island site in a resurgent section of this important retailing pitch. Toby Courtauld, Chief Executive of GPE, said: "Our swap transaction with The Prudential completes the assembly of two prime West End holdings. Both sites offer good scale, are located in rapidly improving micro-locations and have plenty of interesting opportunities to explore. The sale of 293/295 Oxford Street and 14 Hanover Square is in line with our strategy of recycling capital out of mature assets". PRUPIM, one of the leading real estate investment managers in the UK, facilitated the deal on behalf of its client, The Prudential Assurance Company. John Wythe, Head of Life Funds for PRUPIM comments: "This deal makes sense for all. In each case the two companies have had adjoining ownerships and see benefit in rationalizing and consolidating these. In our client's case, they now own an outstanding site comprising 293/297 Oxford Street and the whole of the west side of Harewood Place and numbers 14 and 15 Hanover Square." Contacts: Toby Courtauld Chief Executive Great Portland Estates plc 020 7647 3042 Robert Noel Property Director Great Portland Estates plc 020 7647 3043 John Wythe Head of Life Funds PRUPIM 020 7548 6976 Finsbury James Murgatroyd 020 7251 3801 Gordon Simpson This information is provided by RNS The company news service from the London Stock Exchange