Proposed City Development

Hammerson PLC
02 May 2007



Proposed Major City Development


Hammerson plc and its partner, the City of London Corporation, have entered into
an exclusivity agreement with leading international bank, JPMorgan, to agree
terms for the construction of its new European headquarters building.

Under the terms of the agreement Hammerson will work in partnership with the
City of London Corporation to bring forward a redevelopment of St. Alphage
House, London Wall, London EC2, to create a major new office building of
approximately 90,000m(2) (1,000,000 ft(2)), which will house JPMorgan's
Investment Bank.

Hammerson will be the development manager for the project.  JPMorgan plans to
acquire the long leasehold interest in the site from the City of London
Corporation prior to construction and will own the building.

A preliminary scheme has been drawn up by KPF architects and KKS Strategy is
developing interior designs to JPMorgan's exact specification.  It is
anticipated that a planning application will be submitted later this year with
an anticipated start on site during 2008.

John Richards, Chief Executive of Hammerson, said:

'We are very pleased to be working in partnership with the City of London to
provide a prestigious new headquarters office building for JPMorgan, which will
maintain the bank's long tradition of operating within the Square Mile.'

Michael Snyder, Chairman of the Policy Committee of the City of London
Corporation, said:

'We are delighted with this agreement and once more to be working with Hammerson
on a major development project. This new building and JPMorgan's continued
presence in the City will reinforce London's pre-eminent position as Europe's
leading financial capital.'

Hammerson and the City of London were advised by Knight Frank in their
negotiations with JPMorgan.  Jones Lang LaSalle has advised the City of London
in its capacity as owner of St. Alphage House.  JPMorgan was advised by DTZ.


Enquiries:

John Richards, Chief Executive                     Tel:  [phone]
Christopher Smith, Director of Corporate Affairs   Tel:  [phone]
                                                   [e-mail]



Notes to Editors:


  • Hammerson plc is a leading European REIT (LSE: HMSO). Established over 50
    years ago, the group has operations in the UK and France.  Its high quality
    real estate portfolio provides around 1,200,000m(2) of retail space and
    270,000m(2) of prime offices and is valued at nearly £7 billion.  In recent
    years the group has carried out a number of high profile developments in the
    City, most recently the 70,000m(2) Bishops Square scheme in partnership with
    the City of London Corporation. For more information, visit
    www.hammerson.com


  • The City of London Corporation provides local government services for the
    City of London, the financial and commercial heart of the UK.   It is
    committed to maintaining and enhancing the status of the business City as
    the world's leading international financial and business centre through its
    policies and services.  Its responsibilities also extend far beyond the City
    boundaries and include management of the Barbican Centre, Central Criminal
    Court at the Old Bailey, Epping Forest, Hampstead Heath, three wholesale
    food markets, as well as acting as the London Port Health Authority.  For
    more information, visit www.cityoflondon.gov.uk


  • JPMorgan is part of JPMorgan Chase & Co. (NYSE: JPM), a leading global
    financial services firm with assets of $1.4 trillion and operations in more
    than 50 countries. The firm is a leader in investment banking, financial
    services for consumers, small business and commercial banking, financial
    transaction processing, asset management, and private equity. A component of
    the Dow Jones Industrial Average, JPMorgan Chase has its corporate
    headquarters in New York and its U.S. retail financial services and
    commercial banking headquarters in Chicago. Under its JPMorgan and Chase
    brands, the firm serves millions of consumers in the United States and many
    of the world's most prominent corporate, institutional and government
    clients. For more information, visit www.jpmorgan.com.



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