Canary Wharf Group plc (CWG) announces that it has signed Agreements for Lease for the pre-let to Reuters of approximately 283,000 sq. ft of space in the building at 30 The South Colonnade, Canary Wharf. Reuters, the global information company, will take over the entire building in the Spring of 2005 as their headquarter office.

This formal exchange of contracts confirms that Reuters will lease 239,000 sq. ft on a 15-year lease. The additional 44,000 sq. ft will be leased on a separate lease with a 5th year break exercisable upon payment of a 1.5 year rental penalty as well as a further break at the 10th year.

After LUL vacates the building CWG will, at its own expense, carry out upgrades to a value of £3 million.

As part of the transaction CWG has granted to Reuters a rent free period of approximately 12 months equal to the value of Category A works and in addition CWG will agree to take over three of Reuters’ leasehold properties. Those properties are expected to represent an exposure equivalent to approximately 2.5 years rent free at 30 The South Colonnade. CWG will also acquire the freeholds of Reuters’ current Headquarters at 85 Fleet St and the St. Brides House building at an approximate price of £32.5 million with a short leaseback of Reuters Headquarters to the value of approximately £1.6 million per annum until they move to Canary Wharf in May 2005. Should Canary Wharf decide to sell the buildings, a profit sharing agreement with Reuters will share the profit achieved over and above acquisition and expense costs.