Disposal

Hammerson PLC
17 October 2003


Hammerson - Sale of Three London Office Buildings for £122 million



Hammerson plc has exchanged conditional contracts for the sale of three office
properties in central London, 21 Moorfields, EC2, Grant Thornton House and 40
Melton Street, Euston Square, NW1, to a subsidiary of Fordgate, a private
company, for a total of £122 million. The three properties were valued at  £128
million as at 31 December, 2003.



Built in 1973, 21 Moorfields is a 14,000 m(2) office building, which is let to
Lazard Bros & Co. (who are not currently in occupation) under a lease expiring
in 2008. Hammerson acquired the building in 1992, and it now produces a rental
income of £5.6 million per annum. In 2001, Hammerson obtained outline planning
consent to redevelop the site with a new office building of 40,000 m(2). Under
the terms of the sale contract, Hammerson has been retained as development
manager and granted an option to participate in any redevelopment of the site.



The other two office buildings were acquired by Hammerson in 1999 as part of its
acquisition of the Euston Square Estate. Grant Thornton House provides 6,400 m
(2) of offices and is leased to Grant Thornton, whilst 40 Melton Street,
provides 10,800 m(2) of offices and is leased to Network Rail. The two buildings
generate an aggregate annual rental income of £5.6 million. Hammerson has
retained its interest in One Eversholt Street, Euston Square (previously known
as Blocks C and D), which provides 10,900 m(2) of office space.


Following completion of the transaction, the group's office buildings in central
London will account for around 17% of the total portfolio on a pro forma basis,
compared with 19% at 30 June 2003.


John Richards, Chief Executive of Hammerson said:

  'This sale will release resources for investment in other projects. The group
  has a substantial pipeline of future development opportunities both in the
  retail and office sectors.

  Today's transaction enables us to participate in the future redevelopment of
  21 Moorfields and our retention of One Eversholt Street provides potential
  for Hammerson to be involved in any future redevelopment of Euston Station.'

Hammerson was advised by CB Richard Ellis and BH2.

For further information:

John Richards                                   Tel:  [phone]
Chief Executive



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





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