Shires West Scheme

Hammerson PLC
01 July 2004


NEWS RELEASE

Immediate release - Thursday, 1 July 2004


Hammerson Secures Planning Confirmation for Shires West Scheme in Leicester


Hammerson plc and Hermes have received confirmation from the Government Office
for East Midlands of the resolution to grant planning consent for the Shires
West proposals, which was given by Leicester City Council on 20 April 2004.

The scheme, which is adjacent to the existing 47,800 m(2) Shires shopping
centre, owned 60:40 by Hammerson and Hermes, will include 50,000 m(2) of retail
accommodation, served by 2,000 car park spaces, 6,000 m(2) of restaurant and
leisure uses, including a cinema, and 118 residential units. The proposals will
also include a refurbishment of the existing centre.

As announced in March, John Lewis Partnership has agreed terms for a new 20,000
m(2) department store, providing a full range offer, at the Shires West scheme.

It is anticipated that construction of Shires West will begin during summer
2005, with completion in early 2008. The total cost of Shires West is estimated
at £250 million, of which Hammerson's 60% share would amount to £150 million.

The development of Shires West represents a key part of the masterplan for the
city centre currently being implemented by Leicester Regeneration Company and
the City Council.

John Richards, Chief Executive, Hammerson plc, commented:

' We are very pleased that the way has been paved to regenerate this important
site in Leicester. Together with Hermes, we have been working closely with both
Leicester City Council and Leicester Regeneration Company to bring forward this
exciting scheme. I am confident that Shires West will enhance the whole city by
providing a thriving and vibrant retail destination serving the entire region.'

Andrew Martin, Director Retail Group, Hermes, said:

' We are delighted at the prospect of offering shoppers an exciting new retail
destination in Shires West and look forward to working with Hammerson, Leicester
City Council and Leicester Regeneration Company in taking forward these
proposals.'


For further information:

John Richards, Chief Executive                         Tel: [phone]
Hammerson

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

Andrew Martin, Director Retail Group                   Tel: [phone]
Hermes


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