The negotiations were made possible by the decision of LandSecto divest its euro 595.4-million ($723-million) industrialportfolio to focus on retail, outsourcing and central Londonoffices and Slough's intention to focus primarily on businessspace. "Given the quality of our industrial portfolio, togetherwith our wish to acquire further retail properties, we sought aproperty swap as an efficient way to achieve this aim," saysLandSec's group chief executive Francis Salway. "The acquisition ofSlough's shopping centers will reinforce the strength of ourposition in the retail market."

"We have excellent retail assets," observes Slough chiefexecutive Ian Coull, "but our retail portfolio is too small to giveus meaningful sector diversification, and therefore it isattractive for us to exchange our shopping centers forcore-business property. Land Securities' business space portfoliofits very well with our existing properties and represents aone-off opportunity to acquire a substantial industrial portfolioin the south-east of England. The swap will further consolidate ourposition as the dominant player in UK business space."