Property Lease

Hammerson PLC
16 September 2002


Hammerson and the Corporation of London Sign Agreement for Lease with

Allen & Overy for 70,000 m(2) Spitalfields Office Scheme

Further to the announcement on 11 March 2002, Hammerson plc and its partner, the
Corporation of London, today announce that they have signed the agreement for
lease with leading international law firm, Allen & Overy for Bishops Square,
Spitalfields, London E1, a proposed new office building of 70,000 m(2) (750,000
ft(2)). The overall rent for the 25 year lease, which has a tenant's only break
option after 211/2 years, is approximately £45/ft(2), with a 21 months rent free
period and a fitting out contribution.

Hammerson and the Corporation of London have also exchanged contracts for the
joint development to proceed.

Both agreements are subject to planning consent. A planning application for the
scheme was submitted in March 2002 and a planning permission is anticipated
prior to the end of this year. Work on the development is scheduled to start
early next year, with completion in 2005.

        For further information:

        John Richards          Tel: [phone]

        Chief Executive        Fax: [phone]


Christopher Smith

Director of Corporate Affairs


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