Bristol Alliance

Hammerson PLC
08 July 2004



NEWS RELEASE

For immediate release - Thursday, 8 July 2004



Bristol Alliance Finalises Agreements



Hammerson plc and Land Securities Group PLC announce that they have entered into
the formal property pooling agreements for the Bristol Alliance, finalising the
50/50 joint venture arrangements through which they will progress together their
plans for the Broadmead expansion.  This follows on from the announcement on 21
June 2004 that the two companies would be acquiring Morley Fund Management's
one-third share of the Bristol Alliance. The Bristol Alliance also confirmed
that it signed the development agreement with Bristol City Council on 14 June
2004.



As a result Hammerson and Land Securities have now transferred their property
interests into the Bristol Alliance, thereby pooling their respective holdings,
and Hammerson has made a balancing payment to Land Securities of £30.8 million.
At the same time the Bristol Alliance has acquired additional property interests
in Broadmead for a cost of approximately £22 million from Morley Fund Management
and Henderson Global Investors.



Following these transactions, the Bristol Alliance, in addition to the proposed
development, will own as investment properties 72 retail units, totalling some
31,590 m(2) (340,000 ft(2)) with a current value of £107.4 million. These assets
currently generate an annual rental income of £6.7 million.



The new scheme, which received detailed planning consent in December 2003, will
create some 139,350 m(2) (1.5 million ft(2)) of mixed-use space and incorporates
83,610 m(2) (900,000 ft(2)) of retail space. The scheme will provide new retail,
leisure facilities, residential apartments and public spaces in the heart of
Bristol, as well as offices. Marks & Spencer has agreed terms to occupy the
17,940 m(2) (193,000 ft(2)) four-storey department store.



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.



It is anticipated that works will commence on site in mid 2005 and that the new
scheme will open in 2008.  On completion, the overall Bristol Alliance estate
will comprise approximately 180 retail units, totalling some 115,200 m(2) (1.24
million ft(2)).



John Richards, Chief Executive of Hammerson, commented:



'We are pleased to be working in partnership with Land Securities on the
Broadmead expansion, which continues our programme of major retail-led
regeneration schemes. The pooling of our properties and the restructuring of the
interests in the Bristol Alliance is a significant milestone achieved and has
provided additional impetus for the Bristol Alliance to move forward on this
important project.'



Bob De Barr, Development Director, Land Securities, added:



'We are delighted to have achieved a number of important milestones so quickly,
which have enabled us to maintain the programme. Having acquired Morley's
interest, it is a tribute to the entire team that we have been able to conclude
the formal partnership documentation with Hammerson and sign the development
agreement with the Bristol City Council. With the CPO inquiry now finished, we
are making excellent progress on all fronts.'

For further information please contact:


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

Olivia Hall                                                  Tel: [phone]
Corporate Communications Manager, Hammerson plc           [e-mail]

Bob De Barr                                                  Tel: [phone]
Development Director, Land Securities Group PLC

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





Note to editors:



The overall Broadmead masterplan includes:



  • 16 major stores and more than 100 new shops
  • Over 2,600 car parking 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 28,000m(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 centre

  • 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, which began on 15 June of this year, was concluded on 6
July. The decision is expected in early 2005.






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