Acquisition

Hammerson PLC
25 July 2005

For immediate release - Monday, 25 July 2005





Hammerson plc Acquires Retail Park in France
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Hammerson plc has agreed to acquire Villebon 2, a freehold retail park near
Paris, at a total cost of £104 million (€150 million). The property has a
current annual net rental income of £5.4 million (€7.8 million).



Villebon 2, which opened in 1988, provides 40,300 m(2) (433,800 ft(2)) of retail
accommodation and 2,200 car parking spaces. The scheme, which adjoins an Auchan
hypermarket with 1,200 car parking spaces, has 44 retailers, including PC City,
Animalis, Tati, Toys'R'Us, Aubert, Casa and Darty, making it one of the largest
retail parks in France. In addition, Villebon 2 has the required authorizations
and building permits for an extension of approximately 5,500 m(2) (59,200 ft(2))
of retail space. The retail park is located in Villebon-sur-Yvette, which is in
the southwest suburbs of Paris, 20 kilometres from the city.



The transaction will be effected by Hammerson acquiring the entire share capital
of a private group of companies owned by Mr P Rochemont, Mrs R Soubai, Mr P de
Margerie and Vendomiena. Hammerson will issue 7,071,967 New Ordinary Shares to
the vendors as consideration, which represents 2.5% of Hammerson's current
issued share capital. Based on a share price of 858p, the shares issued have a
value of £61 million (€88 million). Hammerson has also assumed approximately £43
million (€62 million) of debt and other net liabilities in the acquired
companies.



The New Ordinary Shares will be credited as fully paid and will rank pari passu
in all respects with the existing ordinary shares of 25p each in the capital of
Hammerson. A condition of the acquisition is that the New Ordinary Shares be
admitted to the Official List maintained by the United Kingdom Listing
Authority, and to be admitted to trading by the London Stock Exchange, and
accordingly such application will be made together with an application for the
New Ordinary Shares to be admitted to trading by Euronext Paris. It is expected
that the listing and admission of the New Ordinary Shares in London will become
effective on Wednesday, 27 July 2005.



John Richards, Chief Executive of Hammerson, commented:



' We are committed to expanding our business in France and this transaction
represents Hammerson's first retail park acquisition in the country. Villebon 2
is one of the most successful retail park schemes in the Paris region. It has an
excellent retail line up and offers significant opportunities to add value
through an extension and by active asset management.'




For further information:

John Richards, Chief Executive                           Tel:  [phone]

Chris Smith, Director of Corporate Affairs               Tel:  [phone]
                                                         [e-mail]







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