AGM Statement

Hammerson PLC
03 May 2007

                          Extracts from AGM Statement



Hammerson plc, the European REIT, held its Annual General Meeting at its head
office at 10 Grosvenor Street, London, W1 today at 10.30 a.m. At the meeting,
John Nelson, Chairman of Hammerson, made the following statement:


'Hammerson enjoyed another very active year in 2006 and we are maintaining that
momentum in 2007.  We now have a portfolio of retail and office assets of
extremely high quality valued at more than £6 billion. This includes investments
in six of the most successful shopping centres in the UK and five of the
strongest trading shopping centres around Paris. We have a current development
programme of over £900 million and a very exciting future development pipeline
amounting to some £5 billion. We have a strong balance sheet and undrawn
committed financing of over £1 billion. Led by John Richards, I believe we have
the best management team in the sector.



'This has been reflected in our very strong performance in recent years. Indeed,
over the last five years, Hammerson's average annual total shareholder return
has been 32.3% which compares with 27% for the real estate index, making us the
best performing company in the real estate sector amongst our larger peers.



'Development remains a core part of our strategy and has generated and will
continue to generate very good returns for our shareholders.  Six major
developments are currently underway at an estimated total development cost of
over £900 million. At the year end the development profit in respect of these
schemes reflected in the group's accounts totalled £167 million. On completion
they are projected to generate net rental income of £71 million or a 7.3%
initial yield on our costs. This yield is substantially above current prime
property yields and our current developments should therefore give rise to
further substantial capital growth.



'Our development pipeline provides Hammerson with the opportunity to invest a
further £5 billion over the next decade in a range of very attractive schemes
and at the timing of our choice. This will enable the group to maintain its
momentum, potentially doubling the size of the Company and providing the
potential for continued outperformance.



'Yesterday we announced some further good news for our development pipeline. In
partnership with the City of London Corporation, we have entered into an
exclusivity agreement with JPMorgan, one of the world's leading international
banks, to redevelop St. Alphage House in the City to provide a new office
building of 90,000 m(2) (approximately 1 million ft(2)), which will become the
bank's European headquarters. This again illustrates the skills of our team in
securing attractive new development opportunities.



'Following approval by shareholders at the Extraordinary General Meeting in
December 2006, Hammerson elected for REIT status and entered the new regime on 1
January this year.  Hammerson's business model is ideally suited to this new
tax-exempt REIT environment in the UK and of course we already have a
substantial tax-exempt business in France.



'Perhaps I could share with you now some brief observations on the property
markets in which we operate. Both in the City of London and central Paris,
occupational demand for prime offices remains strong and this has been
accompanied by continued demand from investors, leading to a further increase in
office values in the first four months of the year.



'As regards demand from retailers for space, this has continued to polarise
towards the larger shopping centres and retail parks of the type Hammerson owns
and develops. This is leading to some increase in rental values. Investment
demand for major retail assets in the UK and France remains healthy with prime
investment yields little changed this year.



'Looking ahead, although there are uncertainties, including the possibility of a
rise in short-term interest rates, I believe that high quality prime assets of
the type owned by Hammerson will continue to show out-performance and should
display resilience in the event of any softening of market conditions.



'In conclusion, it will probably not have escaped your attention that Hammerson
has recently been rumoured as a possible takeover target. While it is not our
policy to comment on market rumour, as this is the AGM, I would like to take
this opportunity to reassure shareholders that the Board would only consider an
offer for the Company which it believed fully reflected Hammerson's outstanding
investment portfolio, the value of its existing development programme and the
very substantial value of its pipeline which, as I said earlier, provides us
with the potential to double the size of the Company.



'I believe Hammerson has the right strategy, the right resources and the right
management to continue to generate the best returns in the sector over the next
few years.'






Enquiries:

John Richards, Chief Executive                             Tel:  [phone]
Christopher Smith, Director of Corporate Affairs           Tel:  [phone]

                                               [e-mail]




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