RNS Number:4465I
Big Yellow Group PLC
26 November 2007


                                                                26 November 2007


                              Big Yellow Group PLC
                  ('Big Yellow', 'the Group' or 'the Company')

 £150 million Partnership to develop up to 25 stores in the Midlands, the North
                            of England and Scotland


Big Yellow Group PLC is pleased to announce the establishment of a £150m
investment partnership ('the Partnership') with funds managed by Pramerica Real
Estate Investors ('Pramerica') to develop up to 25 stores in the Midlands, the
North of England and Scotland. The Partnership will have a four-year exclusivity
period on the defined territory.

Big Yellow and Pramerica are investing up to £25 million and £50 million
respectively into the Partnership, of which £4.5m and £9m respectively, will be
invested on 30 November 2007, the completion date. All further investments into
the Partnership by Big Yellow and Pramerica will be in the ratio of one third
and two thirds respectively.

A five year term non recourse loan of £75 million has been secured by the
Partnership from the Royal Bank of Scotland PLC to provide investment and
development funding.

Big Yellow has initially agreed to sell five of its development sites together
with its existing store in Leeds to the Partnership. The consideration for the
sites and the store to be transferred into the Partnership is £20.3 million in
cash, representing a small surplus on book value. Big Yellow has also entered
into conditional contracts to sell two more of its development sites at
Manchester and Birmingham to the Partnership. In the case of Birmingham it is
intended that Big Yellow will develop the store which will be transferred to the
Partnership shortly prior to its completion at cost plus a small surplus. In the
case of Manchester, Big Yellow has previously entered into a conditional
agreement with Crosby Homes (North West) Limited, ('Crosby') for the development
of a significant sized mixed use scheme to include the shell of an 80,000 sq ft
self storage centre to be developed at the expense of Crosby. In the event that
the conditions of that agreement are satisfied, then Big Yellow will fit out the
store at its own cost and shortly prior to its completion transfer the store, to
the Partnership at the then open market value.

The initial proceeds to be received by Big Yellow from the sale of the
development sites and the Leeds store to the Partnership will be used to further
the Group's southern UK business, and also to finance its contributions to the
Partnership.

For the year ending 31 March 2007, the profits before tax attributable to the
development sites and the Leeds store being sold to the Partnership, amounted to
£0.3 million.

Big Yellow has further entered into agreements with the Partnership to provide
both development and operational management services on the initial sites and
future sites and stores. In consideration for these services, Big Yellow will
receive certain acquisition, planning, construction management and operating
fees.

Big Yellow has an option to purchase the assets contained within the Partnership
or the interest in the Partnership which it does not own exercisable from the 31
March 2013. On exit whether by way of exercise of the options as set out above
or a sale to a third party, Big Yellow is entitled to certain promotes, which
would result in Big Yellow sharing in the surplus created in the partnership.

The Board of the Partnership will comprise two representatives of both Pramerica
and Big Yellow.

James Gibson, Chief Executive Officer of Big Yellow comments:

'We are very pleased to announce the formation of this Partnership with
Pramerica. We have enjoyed an excellent relationship with them over an eight
year period commencing with their investment in Big Yellow in 1999.

Joining forces with this prestigious institution will allow us to continue to
expand with confidence into the northern part of the UK, whilst at the same time
improving the financial performance of the group. Further it will release funds
for deployment into the South of England where we expect to see more
opportunities in a less competitive property market.

We expect that the partnership will have strong operating cash flow at the point
that our option can be exercised in 2013'.

As previously announced, Big Yellow will announce interim results for the six
months ended 30th September 2007 on Tuesday 27th November, a briefing for
analysts will be held at 10.00am at the offices of Weber Shandwick Financial,
Fox Court, 14 Gray's Inn Road, WC1.

For further information, please contact:

Big Yellow Group PLC                                                01276 477811
Nicholas Vetch, Chairman
James Gibson, Chief Executive Officer

Weber Shandwick Financial                                          020 7067 0700
Louise Robson/John Moriarty/Charlie Hooper

Notes to Editors

About Big Yellow
Big Yellow Group PLC is one of the leading and most dynamic self-storage groups
in the UK. It was founded in 1998 by Nicholas Vetch, Philip Burks and James
Gibson and listed on AIM in May 2000, moving to the Official List of the London
Stock Exchange in 2002.

Big Yellow has expanded rapidly and now operates from 45 stores, 44 in London
and the South, and one in Leeds, with a further 27 stores in development and of
the 72, 61 are held freehold and three long leasehold (approximately 90%). All
the stores have the distinct yellow branding, in accessible main road locations,
with the majority being within the M25 or in strong urban conurbations. When
fully built out the portfolio will provide approximately 4.5 million sq ft of
flexible storage space.

The Group has pioneered the development of the latest generation of self-storage
facilities, which utilise state of the art technology and are located in high
profile, main road locations. Its focus on the location and visibility of its
buildings, coupled with excellent customer service, has created the most
recognised brand name in the UK self-storage industry.

About Pramerica Real Estate Investors
Pramerica Real Estate Investors' is the real estate investment management and
advisory business of Prudential Financial, Inc. of the United States (NYSE:
PRU). Its specialised operating units offer a broad range of investment
opportunities and investment management services in the United States, Europe,
Asia, and Latin America. The company's fund management operations, located in
Parsippany, N.J.; Atlanta, Ga.; Munich, London, Mexico City and Singapore, are
supported by a network of local offices throughout the world. As of June 30,
2007, Pramerica Real Estate Investors managed $39.6 billion of gross assets
($28.8 billion net) on behalf of more than 300 clients and is ranked among the
largest real estate investment managers. For more information, visit
www.pramericarei.com.

About Pramerica Financial
Pramerica Financial is a tradename used by Prudential Financial, Inc., a company
incorporated and with its principal place of business in the United States, and
its affiliates in select countries outside the United States. Prudential
Financial, Inc. (NYSE: PRU), a financial services leader with approximately $637
billion of assets under management as of September 30, 2007, has operations in
the United States, Asia, Europe, and Latin America. Leveraging its heritage of
life insurance and asset management expertise, Prudential Financial is focused
on helping individual and institutional customers grow and protect their wealth.
The company's well-known Rock symbol is an icon of strength, stability,
expertise and innovation that has stood the test of time. Prudential Financial's
businesses offer a variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds, asset management, and real
estate services. For more information, please visit www.prudential.com.
Prudential Financial is not affiliated in any manner with Prudential plc, a
company incorporated in the United Kingdom.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCOKPKPFBDDKDB