Acquisition

Hammerson PLC
02 April 2004




Hammerson - Agreement to Acquire London Stock Exchange Properties for £68
million

Hammerson plc has agreed to acquire ownership of three buildings from the London
Stock Exchange for an initial price of £68 million including costs. The
properties, all of which are freehold, comprise the London Stock Exchange tower
building, the former Stock Exchange market building and 24 Throgmorton Street,
the former Post Office building. It is anticipated that completion will take
place in July 2004 following the London Stock Exchange's relocation to
Paternoster Square.

Hammerson will make an initial payment of approximately £34 million on
completion, with the balance due in December 2005. The London Stock Exchange may
be entitled to an additional payment, capped at £6 million, based on the
profitability of any redevelopment.

The properties, which are bounded by Old Broad Street and Threadneedle Street to
the South and by Throgmorton Street to the North, occupy a prominent location
near the Bank of England, in an area which has seen significant improvement in
recent years.

The 0.6 hectare site has planning consent for a total of 45,500 m(2) (490,000 ft
(2)) of high quality office and retail space. The scheme designed by architects,
Nicolas Grimshaw & Partners, comprises two principal elements: the refurbished
tower building, incorporating an adjoining new East building; and a new low rise
West building. Totalling 28,800 m(2) (310,000 ft(2)), the tower will be arranged
over ground and 26 upper floors and provide six retail units at ground floor
level. The new West building, which will replace the former Stock Exchange
market building, will provide 16,700 m(2) (180,000 ft(2)) of accommodation, with
provision of eight upper floors of offices and five retail units at ground
floor.

It is anticipated that a redevelopment will be undertaken on a phased basis,
commencing with the refurbishment of the tower building and construction of the
East building, with a possible start on site during 2005.

The acquisition will be financed from the group's existing financial resources.

John Richards, Chief Executive of Hammerson, commented:

' I am delighted that Hammerson has agreed to acquire this prominent and well
located building. This acquisition is in line with the group's strategy of
maintaining a pipeline of future development opportunities and recycling
capital. Since the beginning of 2003, we have raised nearly £250 million from
the disposal of office properties in central London. I believe that the future
redevelopment and ownership of these buildings will generate attractive
returns.'

Hammerson was advised by Strutt & Parker and the London Stock Exchange was
advised by CBRE.

For further information:

John Richards, Chief Executive, Hammerson plc           Tel: [phone]

Christopher Smith, Director of Corporate Affairs, 
Hammerson plc    Tel: [phone]
                 [e-mail]




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