Investment

Hammerson PLC
16 July 2001

 
Hammerson Invests in Stonemartin  
 
Hammerson plc has agreed to subscribe for approximately 14% of the enlarged
share capital of Ashquay Group PLC, which subject to shareholder approval of
Ashquay's shareholders, will be renamed Stonemartin plc ('Stonemartin')
following the acquisition by Ashquay Group PLC of Stonemartin Corporate
Centres Limited in an agreed share for share offer. The consideration for the
shares to be acquired by Hammerson will be £4 million. The subscription by
Hammerson is conditional on Ashquay's shareholder approval and the disposal
of certain of Ashquay's property assets.
 
Stonemartin aims to provide high quality serviced offices operating under the
Institute of Directors' brand name ' IoD' to be known as IoD Corporate
Centres. Stonemartin is responsible for the costs of running but not for the
funding or cost of fitting out each centre, which is assumed by a separately
owned limited partnership. Stonemartin will be responsible for the running of
the centres under a separate management agreement with the owning partnership
and will be remunerated by receiving a proportion of the revenue from each
centre.
 
Stonemartin currently manages a serviced office centre in Bristol and is to
operate an IoD branded centre at Peter House in Manchester. Peter House was
acquired from Hammerson in 2000 by a limited partnership comprising Britel
Fund Trustees Limited (managed by Hermes) and Norwich Union Life and Pensions
Limited, (managed by Norwich Union), who have funded the acquisition and fit
out of the centre. The partnership has agreed that Stonemartin will operate
this property as an IoD Corporate Centre.
 
Commenting on the transaction, John Richards, Hammerson's Chief Executive
said:
 
     ' This is an opportunity for Hammerson to participate in a focused
way in the serviced office sector. The association with the Institute of
Directors gives Stonemartin a strong brand name and access to the IoD's
membership. The limited partnership structure is intended to protect
Stonemartin from the commercial risk of owning or leasing buildings.'
 
          
For further information:
 
John Richards                                      Tel: [phone]
Chief Executive

Hammerson plc

 
Christopher Smith                               Tel: [phone]
Director of Corporate Affairs

Hammerson plc