Acquisition

Hammerson PLC
20 December 2000

 
Hammerson Acquires City Development Opportunity
 
Hammerson has acquired a two thirds interest in Spitalfields Development
Group ('SDG') for a total of £18 million by acquiring the one third interests
previously owned by SPP and Metacorp. The remaining one third interest in SDG
is owned and will be retained by Balfour Beatty.

SDG's principal asset is a long leasehold interest in a development site, 10
Bishops Square, London, E1, which has potential for an office and retail
development of 18,580 sq m (200,000 sq ft). The freehold interest in the site
is owned by The Corporation of London. In addition, SDG has an interest in
the adjoining development site at 1 Bishops Square, the freehold of which is
also owned by The Corporation of London. SDG's interests have been combined
with those of The Corporation in a conditional joint venture which gives SDG
an effective 32% interest in the two proposed developments totalling 63,170
sq m (680,000 sq ft). Mike Bear will continue as Chief Executive of SDG.

John Richards, Chief Executive of Hammerson, said:
 
'This is an excellent location, close to Liverpool Street and Broadgate.
Hammerson's recent letting of its adjacent 280 Bishopsgate, part of
Spitalfields, underlines the buoyant demand for high quality office
accommodation in this area. We have successfully worked with Balfour Beatty
on a number of projects in the past and look forward to continuing this
relationship.'
 
Judith Mayhew, Chairman of The Policy and Resources Committee, The
Corporation of London, commented:
 
'The current strong demand for high quality office buildings is evidence of
the City of London's continuing role as Europe's financial capital and the
world's leading international financial and business centre. We welcome
Hammerson's involvement in this project together with Balfour Beatty, which
will help meet the demand for large business space users in the City of
London and regenerate this area of Spitalfields, creating more local
employment within Tower Hamlets.'
 
Peter Zinkin, Development Director of Balfour Beatty, said:

'The Spitalfields Development is a project that we have been working on for
many years and, as we move towards completing the development, we are very
pleased that Hammerson has entered this partnership.'
 
Hammerson was advised by Strutt & Parker. The letting agents for the proposed
developments are CB Hillier Parker. SPP were advised by Celexa REIM Ltd on
the disposal of their interest.
 
 
For further information:
 
John Richards
Chief Executive, Hammerson plc                 Tel: [phone]
Christopher Smith
Director of Corporate Affairs, Hammerson plc   Tel: [phone]