Interim Management Statement

Hammerson PLC
01 May 2008

Interim Management Statement



Hammerson plc publishes its first interim management statement for 2008. The
Annual General Meeting of the Company takes place at 10 Grosvenor Street, London
W1K 4BJ at 10.30 a.m. today.



Key points



•         Further good progress made on letting and completing the current
developments. Additional contracted income from developments will increase
annual rents by £36 million over the next few years.



•         Three major retail schemes in Bristol, Leicester and Paris open in
September this year. By rental income, these are respectively 83%, 73% and 85%
let, taking into account leases signed and in solicitors' hands.



•         Additional committed borrowing facilities of £750 million arranged
since 31 December 2007.



•         Hammerson's portfolio continues to show a good operational
performance, generating a robust income stream. The average unexpired lease term
is in excess of ten years and the vacancy rate remains very low at 2.1%.





Commenting on Hammerson's performance in 2008, John Nelson, Chairman said:



'We have made good progress in all areas of our business this year. We have a
retail and office portfolio of the highest quality, both in the UK and France.
It provides the potential for further good income growth over the next three
years, both from the existing investment assets and the current development
projects as they are completed and let.  We have a strong balance sheet and are
well-financed. Hammerson is therefore in a good position to weather the current
market uncertainties and take advantage of opportunities that may arise.'



Investment portfolio



•         Since the year end, Hammerson has continued its programme of capital
recycling with the sale in March of its 50% interest in One London Wall, the
18,500m2 office building developed and owned jointly with Kajima. The net
proceeds from the sale were £67 million compared with a valuation at the end of
2007 of £69 million.



•         In April, a payment of £137 million was made in respect of the
acquisition of the City of London's 25% long leasehold interest in Bishops
Square, London EC1. The City retains the freehold interest in the scheme.




Developments



•         Six major developments are currently underway at an estimated total
cost of £955 million of which approximately £330 million has still to be spent.
Five of the schemes are scheduled for completion in 2008. Following completion
and letting, these projects are projected to generate income of about £73
million, of which £36 million has now been contracted or is in solicitors'
hands. This will provide a further boost to income, particularly in 2009 and
2010.



•         Good progress is being made on letting the 30,900m2 City office
development at 125 Old Broad Street, London EC2. In February, 3,100m2 of space
was let to French law firm Gide Loyrette Nouel for 14 years at a rent equivalent
to £60 per ft2. In March, a 20 year lease was signed with international real
estate advisor DTZ for 7,000m2 of accommodation at a rent equivalent to £53.50
per ft2. The property is now 34% let.



•         The 20,600m2 nine-storey office development at 60 Threadneedle Street,
London EC2 is on schedule for completion in November 2008. Hammerson is in
preliminary discussions with a number of prospective occupiers of the building.



•         Good progress continues to be made in advancing schemes in the longer
term development pipeline. In January, Hammerson and Town Centre Securities
agreed terms with Marks & Spencer to anchor the Eastgate Quarters retail scheme
in Leeds with a 18,250m2 store. Hammerson and its development partners submitted
a planning application in March, for a major mixed-use regeneration scheme at
Brent Cross and Cricklewood in north London.



Financing



•         During the first four months of the year a total of £750 million of
additional committed financing has been arranged.  New bank facilities amounting
to £350 million have been put in place and in April we signed a £400 million
loan, secured on the office building at Bishops Square. This loan has a
five-year term and carries a fixed rate of interest of 6.3% per annum.



•         Cash and undrawn committed facilities totalled £779 million at 31
March 2008.



•         Net debt was £2,690 million at 31 March 2008, compared with £2,496
million at the end of 2007. The movement of £194 million included a £131 million
exchange retranslation adjustment, with net expenditure accounting for the
balance. 64% of gross debt was at fixed rates of interest.



Markets



During 2008, the banking sector has remained cautious about advancing new loans,
particularly to the commercial real estate sector. As a consequence, activity in
real estate markets remains restricted and it is apparent that there have been
further declines in UK property values in the first quarter of the year. In
France, the office investment market has shown some signs of softening, although
values of retail assets have shown resilience. Against this background,
Hammerson is well placed to exploit any opportunities that may arise, given the
company's strong financial position.




With regard to the occupational markets, many retailers in the UK are continuing
to face challenging conditions. Weaker consumer confidence is affecting retail
spending. Nevertheless, Hammerson is continuing to attract retailers to take
space in the two major retail developments in Bristol and Leicester, both of
which complete in September this year. The vacancy rate within our shopping
centre and retail parks portfolios remains low at 2.6%.



In the City of London office market, demand has continued to weaken as we
anticipated earlier in the year. Several banks are responding to the difficult
financial markets by reducing staff numbers at a time when development
completions are increasing the supply of new space, causing rents to soften.
Hammerson's office investment portfolio in the City is over 99% let with an
average unexpired lease term of over 15 years.



In France, which accounts for nearly 30% of Hammerson's portfolio, demand from
retailers for space in shopping centres remains healthy. In the first quarter
there has been some weakening in demand from occupiers for offices. However, the
group's offices in Paris are 93% let.



Management



Gerard Devaux, an Executive Director of Hammerson since 1999 and Managing
Director of Hammerson Europe will retire in September. His responsibilities as
Managing Director in France will be assumed by Christophe Clamageran who joined
Hammerson France in March  following a successful 20 year career in property in
Paris, latterly with BNP Paribas Real Estate.



Conference call



There will be a conference call for investors at 8.00 a.m. today.  To
participate in the call, please dial:


UK                                            0808 109 0700
UK Local                                      0203 037 9060
International                                 [phone]
USA                                           18669665335
Netherlands                                   08000229132
France                                        0805630061
Germany                                       08006737932



A replay of the conference can subsequently be accessed by dialing:


UK                                  0208 196 1998                     Code 7669410
USA                                 [phone]                  Code 7669410
Netherlands                         [phone]                  Code 7669410
France                              0800942766                        Code 7669410
Germany                             08000004324                       Code 7669410




For further information, please contact:

John Richards, Chief Executive                                      Tel:  [phone]
Simon Melliss, Group Finance Director                               Tel:  [phone]

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








Forward-looking statements



This document contains certain statements that are neither reported financial
results nor other historical information. These statements are forward-looking
in nature and are subject to risks and uncertainties. Actual future results may
differ materially from those expressed in or implied by these statements. Many
of these risks and uncertainties relate to factors that are beyond Hammerson's
ability to control or estimate precisely, such as future market conditions,
currency fluctuations, the behaviour of other market participants, the actions
of governmental regulators and other risk factors such as the Company's ability
to continue to obtain financing to meet its liquidity needs, changes in the
political, social and regulatory framework in which the Company operates or in
economic or technological trends or conditions, including inflation and consumer
confidence, on a global, regional or national basis. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only as
of the date of this document. Hammerson does not undertake any obligation to
publicly release any revisions to these forward-looking statements to reflect
events or circumstances after the date of this document. Information contained
in this document relating to the Company should not be relied upon as a guide to
future performance.


Notes to Editors



Hammerson plc: is a FTSE-100 Real Estate Investment Trust with operations in the
UK and France. The group's core business is investing in, managing and
developing prime properties, principally city centre shopping centres and major
office buildings. Its high quality portfolio, valued at £7.3 billion at 31
December 2007, includes 14 major shopping centres, 19 retail parks and eight
office properties.



The Company is currently carrying out six major developments at a total cost of
£955 million further details of which are set out below.

Cabot Circus, Bristol

Size:                   92,000 m(2)                         The Cabot Circus mixed-use development started in
                                                            Autumn 2005. In addition to the two department
Completion:             September 2008                      stores, the scheme will provide
                                                            150 retail units, including 15 flagship stores,
Developers:             Hammerson 50%                       cafes, bars and restaurants. It includes a
                        Land Securities 50%                 6,800 m(2) cinema, 28,000 m(2) of office space, two
                                                            new public squares and 2,600 parking spaces. It
                        House of Fraser,                    also incorporates 250 residential units and
Anchor stores:                                              280 units of student accommodation.
                        Harvey Nichols

                        Chapman Taylor,
Architects:
                        Stanton Williams

                        83% let or in solicitors' hands
Letting status:



Highcross, Leicester

Size:                   61,000 m(2) extension               Hammerson is developing a 61,000 m(2) mixed-use
                                                            extension to The Shires, Leicester's principal city
Completion:             September 2008                      centre shopping destination. The scheme will more
                                                            than double the size of the existing centre to over
Developers:             Hammerson 60%                       100,000 m(2). In addition to John Lewis, which will
                        Hermes 40%                          anchor the scheme, the development will create
                                                            30,000 m(2) of retail accommodation, including five
                        John Lewis                          additional stores, 40 retail units, a 7,000 m(2)
Anchor store:                                               cinema, 6,000 m(2) of cafes and restaurants, 143
                        Chapman Taylor, Foreign Office      residential units and a 2,000 space car park.
Architects:
                        73% let or in solicitors' hands
Letting status:

Parinor, Paris

Size:                   66,500 m(2)                         Built in 1974, and refurbished in 1996, Parinor is
                                                            currently subject to a 24,000 m(2) refurbishment
Completion:             September 2008                      and extension, the first phase of which was
                                                            completed in April 2008. The works will increase
Ownership:              Hammerson 33,500 m(2)               the size of the scheme to over 90,000m2, making it
                                                            the largest shopping centre serving the north of
Main tenants:           Carrefour, C&A, Fnac, H&M,          Paris. The scheme includes a UGC cinema,
                                                            restaurants and 4,500 parking spaces.
                        New Look, Zara

Letting status:         85% let or in solicitors' hands

Union Square, Aberdeen

Size:                   49,000 m(2)                         Hammerson is currently developing a nine-hectare
                                                            site adjacent to Aberdeen's central railway station
Completion:             Oct  2009                           to provide a combination of traditional mall
                                                            shopping and retail park. On completion it will be
Developers:             Hammerson                           the largest scheme of its type in Scotland,
                                                            providing 21,000 m(2) of retail units, a 16,000 m
Pre-lets:               New Look, Next                      (2) retail terrace, a 4,200 m(2) multiplex cinema,
                                                            7,800 m(2) of leisure and catering accommodation,
                        Cine UK                             1,700 parking spaces and a new civic square.

Architects:             BDP

Letting status:         23% let or in solicitors' hands

125 Old Broad Street, London EC2

Size:                   30,900 m(2)                         In February 2006, Hammerson started work on the
                                                            redevelopment of the 26-storey tower building at
Completion:             May 2008                            125 Old Broad Street, to provide 29,700 m(2) of
                                                            Grade A office accommodation and 1,200 m(2) of
Ownership:              Hammerson - 50%                     retail and storage space. In November 2006,
                                                            Hammerson sold a 50% stake in the scheme to two
                        GE Real Estate - 25%                joint venture partners, GE Real Estate and Bank of
                                                            Ireland to show a profit of £46 million. Leases
                        Bank of Ireland - 25%               have recently been signed with French law firm Gide
                                                            Loyrette Nouel and real estate advisors DTZ.
Architects:             GMW
Letting status:         34% let or in solicitors' hands


60 Threadneedle Street, London EC2

Size:                   20,600 m(2)                         Construction work is underway on a 20,600 m(2)
                                                            nine-storey building adjacent to the group's
Completion:             November 2008                       development at 125 Old Broad Street. The scheme,
                                                            which forms part of the site previously occupied by
Ownership:              Hammerson 100%                      The London Stock Exchange, incorporates 1,000 m(2)
                                                            of retail space. Completion is scheduled for
Architects:             Eric Parry                          November 2008.

Letting status:         Available

.






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