AGM Statement

Hammerson PLC
06 May 2004



Embargoed until 11.00 a.m. - Thursday, 6 May 2004


Extracts from the Chairman's Address to Shareholders at the Annual General
Meeting of Hammerson plc - Thursday, 6 May 2004

At the Annual General Meeting of Hammerson plc held on Thursday, 6 May 2004,
shareholders approved a final dividend of 11.71 pence per share to be paid on 13
May, making a total dividend for 2003 of 16.83 pence per share. The increase in
the dividend of 6.5% over the previous year reflects the Board's continuing
confidence in Hammerson's potential and recognition of the importance that
investors place on a robust and growing dividend.

Speaking at the meeting, the Chairman, Ronald Spinney, said:

'Hammerson continued to make good progress in 2003, notwithstanding the
background of challenging conditions in several of the group's markets.

There was a sound performance from Hammerson's retail properties in the UK and
France, which showed good underlying rental growth and valuation increases.
Particular highlights were the completion and opening of the Bullring shopping
centre in Birmingham last September and the encouraging progress in our retail
parks business.

Conditions in the London and Paris office markets were subdued in 2003. We
completed two office schemes in London and one in Paris in the latter part of
the year, at a total cost to the group of £268 million, and, although unlet at
the end of 2003, we have subsequently announced the first letting at One London
Wall in the City. I am very encouraged by the level of interest from prospective
occupiers, both for this building and 10 Grosvenor Street in the West End.
Although the letting market in Paris remains somewhat difficult, I am pleased to
say we are continuing discussions with a number of potential occupiers.

Several significant events have taken place since the beginning of this year. In
January, a major block of Hammerson shares, amounting to nearly 20% of the
Company's equity and previously owned by Standard Life Investments, was
successfully placed by the group's brokers with a wide range of existing and new
shareholders at a small discount to the then share price.

On 31 March 2004, Hammerson plc obtained a secondary listing for its shares on
Euronext Paris, the French stock exchange. This has enabled the group to elect
into the new SIIC tax regime and benefit from tax-exempt status for its French
properties. The UK Treasury has also recently produced a consultation document
regarding the possible introduction of tax transparent vehicles for property
ownership in this country. The dialogue between the Treasury and the property
industry is to be welcomed and Hammerson is taking an active role in this
consultation process.

We have maintained our strategy of recycling capital. In February, Hammerson
sold 21 Moorfields in the City for £48 million. Today, I am pleased to announce
that Hammerson has exchanged contracts for the sale of its long leasehold
interest in the Euston Square Estate, London NW1, for £124 million, which
compares with its book value of £102 million at the end of 2003. I think this
demonstrates the current strength of the investment market for office properties
in London. We are continuing to invest both in the development programme and
selective acquisitions. In April, Hammerson acquired The London Stock Exchange
buildings in the City for £68 million where it intends to carry out a major
redevelopment.

In summary, Hammerson's portfolio is of the highest quality, providing a secure
income stream and offering good growth potential. The group has a sound balance
sheet and the resources necessary both to complete its existing developments and
advance new projects. I have every confidence in Hammerson's future prospects.'


For further information:

Ronald Spinney, Chairman                               Tel: [phone]
Christopher Smith, Director of Corporate                 Tel: [phone]
Affairs                                            [e-mail]






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