Land Securities : Final results of tender offers

2 February 2017

LAND SECURITIES GROUP PLC

('LAND SECURITIES')

LAND SECURITIES PLC ANNOUNCES FINAL RESULTS OF THE TENDER OFFERS

On 24 January 2017, Land Securities' wholly-owned subsidiary, Land Securities PLC, launched separate invitations to holders of four series of its bonds to tender their notes for cash. Land Securities PLC announced yesterday that it would accept for purchase in cash an aggregate principal amount of notes across three series equal to £634.7m at a cash cost of £759.1m. The final results of the offer are contained in the release issued to the Irish Stock Exchange yesterday (see below).

In addition, Land Securities Capital Markets PLC announced yesterday that it would issue a £400m bond with an expected maturity of 7 years, paying a coupon of 1.974% and a £300m bond with an expected maturity of 12 years, paying a coupon of 2.399%.

Based upon Land Securities' reported debt position and valuation at 30 September 2016, the pro forma impact of the tender offers and new issuance is as follows:

· The Group's weighted average maturity of debt will be extended by 0.6 years.

· Group LTV increases by 0.8 percentage points.

· Adjusted diluted net assets will be circa £124.4m lower.

· The net interest saving for the year to March 2018 on the tendered bonds, taking into account the cost of the new issuance, will be circa £17.3m.

Commenting on the transaction, Martin Greenslade, Chief Financial Officer, said, 'These are the first new bonds to be issued out of our secured debt structure since 2007. We are pleased with the level of investor interest as we consider how we finance a future phase of net investment'.

The following release was issued to the Irish Stock Exchange yesterday by Land Securities PLC:

'LAND SECURITIES PLC ANNOUNCES FINAL RESULTS OF THE TENDER OFFERS

On 24 January 2017, Land Securities PLC (the Offeror) launched separate invitations to holders of Land Securities Capital Markets PLC's (the Company) outstanding (a) 5.425 per cent. Class A3 Notes due 2022 (ISIN: XS0204778145), (b) 5.391 per cent. Class A4 Notes due 2026 (ISIN: XS0204778905), (c) 5.391 per cent. Class A5 Notes due 2027 (ISIN: XS0204779465) and (d) 4.875 per cent. Class A10 Notes due 2025 (ISIN: XS0269067095) (together, the Notes), to tender their Notes for purchase by the Offeror for cash (the Offerand together, the Offers), subject to applicable offer and distribution restrictions. The Offeror announced the indicative results of the Offers earlier today.

Capitalised terms used and not otherwise defined in this announcement have the meanings given in the tender offer memorandum dated 24 January 2017 (the Tender Offer Memorandum).

The Offeror announces that it will (subject to satisfaction or waiver of the New Issue Condition) accept for purchase in cash an aggregate principal amount of Class A3 Notes, Class A4 Notes and Class A10 Notes validly tendered pursuant to the Offers equal to £634,684,000. The Offeror will not be accepting for purchase any of the Class A5 Notes tendered for purchase pursuant to the Offers. The final results of the Offers are as follows:

The Offers remain subject to the conditions and restrictions set out in the Tender Offer Memorandum.

Whether the Offeror will purchase any Notes validly tendered in the Offers is subject, without limitation, to the signing by the Company and the respective Managers in respect of the New Issue of a subscription agreement for the purchase of, and subscription for, the New Notes (the New Issue Condition). The New Issue Condition may be waived by the Offeror.

Subject to the satisfaction (or waiver) of the New Issue Condition, the expected Tender Offer Settlement Date is 8 February 2017.

Full details concerning the Offers are set out in the Tender Offer Memorandum.

Questions and requests for assistance in connection with the Offers, may be directed to the Dealer Managers and the Tender Agent, the contact details for both of which are set out below.

HSBC Bank plc (Telephone: +44 (0) 20 7992 6237; Attention: Liability Management Group; Email: LM_EMEA@hsbc.com) and Lloyds Bank plc (Telephone: +44 (0) 20 7158 1721; Attention: Liability Management Group; Email: liability.management@lloydsbanking.com) are acting as Dealer Managers and Lucid Issuer Services Limited (Telephone: + 44 (0) 20 7704 0880; Attention: Thomas Choquet / Arlind Bytyqi; Email: landsecurities@lucid-is.com) is acting as Tender Agent.

DISCLAIMERThis announcement must be read in conjunction with the Tender Offer Memorandum. No offer or invitation to acquire or sell any securities is being made pursuant to this announcement. The Dealer Managers do not take responsibility for the contents of this announcement. The distribution of this announcement and the Tender Offer Memorandum in certain jurisdictions may be restricted by law. Persons into whose possession this announcement and/or the Tender Offer Memorandum come into are required by each of the Offeror, the Dealer Managers and the Tender Agent to inform themselves about and to observe any such restrictions.'

- Ends -

Land Securities Group PLC

Investors

Edward Thacker

T: +44 (0)20 7024 5185

edward.thacker@landsecurities.com