Bristol Alliance

Hammerson PLC
23 June 2004


NEWS RELEASE

For immediate release - Wednesday, 23 June 2004


Bristol Alliance


Hammerson plc and Land Securities Group PLC have agreed to acquire Morley Fund
Management's one-third interest in the Bristol Alliance and will progress the
Broadmead expansion scheme as a 50:50 joint venture.


The £500 million mixed-use development, which received detailed planning consent
in   December 2003, totals 139,350 m(2) (1,500,000 ft(2)), including 83,610 m(2)
(900,000 ft(2)) of retail space. The scheme will provide new retail, cafes,
bars, restaurants, residential apartments and public spaces in the heart of
Bristol, as well as leisure facilities and offices.


A joint project team has been created between Hammerson and Land Securities to
advance the scheme, building on the successful working relationship established
between the two companies at Bullring, Birmingham.


Morley will be paid for its investment in the scheme to date. In addition, the
Bristol Alliance will acquire a number of other properties currently owned by
Morley in Broadmead. Morley will also sell to The Mall Fund (a limited
partnership it set up in 2002 with Capital & Regional) its long leasehold
interest in the Galleries Shopping Centre, which does not form part of the
Broadmead expansion.


All three companies are committed to promoting central Bristol as the region's
premier retail destination.


John Richards, Chief Executive of Hammerson, added:


'We are delighted to have increased our interest in this major development which
continues our programme of retail-led regeneration schemes.'


Francis Salway, Chief Executive of Development at Land Securities, commented:


'We have made very good progress in advancing the Broadmead development and
obtained all necessary planning consents.  We now look forward to working with
Hammerson and the City Council to deliver this exciting new development.'


Ian Womack, Managing Director, Property, Morley Fund Management, said:


'We have decided to reposition our investment in Bristol by selling our interest
in the Bristol Alliance to Land Securities and Hammerson and selling The
Galleries Shopping Centre into The Mall, the highly successful Limited
Partnership set up by Morley Fund Management and Capital & Regional in 2002. I
am confident that The Mall will continue to work with Bristol Alliance in
enhancing Bristol's retail offer and promoting the entire city.'


It is anticipated that works will commence on site in mid 2005 and the new
development will open in 2008.


For further information please contact:

John Richards                                                 Tel: [phone]
Chief Executive
Hammerson plc

Chris Smith                                                   Tel: [phone]
Director of Corporate Affairs
Hammerson plc

Francis Salway                                                Tel: [phone]
Chief Executive of Development
Land Securities Group PLC

Emma Denne                                                    Tel: [phone]
Director of Corporate Communication
Land Securities Group PLC

Ian Womack                                                    Tel: [phone]
Managing Director, Property
Morley Fund Management


Note to editors:


The overall Broadmead masterplan includes:


•            A four-storey flagship department store.

•            A further 15 major stores and more than 100 new shops.

•            Over 2,600 car park spaces.

•            New cycle routes, bus and coach stops.

•            Numerous dedicated public spaces, including a new square around
             Quakers Friars, featuring shops, restaurants and residential 
             apartments.

•            a new covered civic space in front of the proposed department
             store.

•            More than 28,000 m(2) (310,000 ft(2)) of new office space with
             associated car parking.

•            Significant leisure-uses, including bars, restaurants and
             entertainment facilities.

•            242 residential units including 24 affordable homes in the heart of
             the city.

•            Masterplanning architects Chapman Taylor, with the assistance of a
             specially commissioned artist and engineer, have designed the unique
             shell-shaped roof which will cover the central area and much of the 
             scheme's three new streets. The first of its kind in Europe, the 
             roof will provide protection from the elements without losing the 
             open air 'city centre experience' - one of the nine key priorities 
             identified by the consultation process.

•            The new 2,616-space car park, with its pedestrian bridge leading
             straight into the heart of the new Broadmead, will be a spectacular 
             feature in itself - created by award-winning architects, Wilkinson 
             Eyre, designers of the acclaimed Gateshead Millennium Bridge and 
             the Explore-at-Bristol building.

•            The landmark four-storey department store will be the subject of a
             separate planning application and will have its own specialist
             architect. It will be part of the new gateway to Bristol - a 
             dramatic view from the M32 beyond a reconfigured Bond 
             Street-Newfoundland Street junction towards a cutting-edge
             department store.

•            A CPO inquiry began on 15 June of this year and the decision is
             expected in early 2005.


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