Bristol Alliance

Land Securities Group Plc
08 July 2004



8 July 2004



LAND SECURITIES GROUP PLC


BRISTOL ALLIANCE FINALISES AGREEMENTS


Land Securities Group PLC ('Land Securities') and Hammerson plc ('Hammerson')
announce that they have entered into the formal property pooling agreements for
the Bristol Alliance, finalising the 50/50 joint venture arrangements through
which they will progress together their plans for the Broadmead expansion.  This
follows on from the announcement on 21 June 2004 that the two companies would be
acquiring Morley Fund Management's one-third share of the Bristol Alliance. The
Bristol Alliance also confirmed that it signed the development agreement with
Bristol City Council on 14 June 2004.



As a result Land Securities and Hammerson have now transferred their property
interests into the Bristol Alliance, thereby pooling their respective holdings,
and Hammerson has made a balancing payment to Land Securities of £30.8m.  At the
same time the Bristol Alliance has acquired additional property interests in
Broadmead for a cost of approximately £22m from Morley Fund Management and
Henderson Global Investors.



Following these transactions, the Bristol Alliance, in addition to the proposed
development, will own as investment properties 72 retail units, totalling some
31,590 sq m (340,000 sq ft) with a current value of £107.4m.  These assets
currently generate an annual rental income of £6.7m.



The new scheme, which received detailed planning consent in December 2003, will
create some 139,350 sq m (1.5m sq ft) of mixed-use space and incorporates 83,610
sq m (900,000 sq ft) of retail space.  The scheme will provide new retail,
leisure facilities, residential apartments and public spaces in the heart of
Bristol, as well as offices. Marks & Spencer has agreed terms to occupy the
17,940 sq m (193,000 sq ft) four-storey department store.



A joint project team has been created between Land Securities and Hammerson to
advance the scheme, building on the successful working relationship established
between the two companies at Bullring, Birmingham.



It is anticipated that works will commence on site in mid 2005 and that the new
scheme will open in 2008.  On completion, the overall Bristol Alliance estate
will comprise approximately 180 retail units, totalling some 115,200 sq m (1.24m
sq ft).



Bob De Barr, Development Director, Land Securities, commented:  'We are
delighted to have achieved a number of important milestones so quickly, which
have enabled us to maintain the programme. Having acquired Morley's interest, it
is a tribute to the entire team that we have been able to conclude the formal
partnership documentation with Hammerson and sign the development agreement with
the Bristol City Council. With the CPO inquiry now finished, we are making
excellent progress on all fronts.'



John Richards, Chief Executive of Hammerson, added:  'We are pleased to be
working in partnership with Land Securities on the Broadmead expansion, which
continues our programme of major retail-led regeneration schemes. The pooling of
our properties and the restructuring of the interests in the Bristol Alliance is
a significant milestone achieved and has provided additional impetus for the
Bristol Alliance to move forward on this important project.'



                                    - ends -



For further information please contact:


Bob De Barr                                                   Tel: [phone]
Development Director
Land Securities Group PLC

Emma Denne                                                    Tel: [phone]
Director of Corporate Communication
Land Securities Group PLC

John Richards                                                 Tel: [phone]
Chief Executive
Hammerson plc

Olivia Hall                                                   Tel: [phone]
Corporate Communication Manager
Hammerson plc







Note to editors:



The overall Broadmead masterplan includes:



  • 16 major stores and more than 100 new shops
  • Over 2,600 car parking spaces
  • New cycle routes, bus and coach stops
  • Numerous dedicated public spaces, including:

      • a new square around Quakers Friars, featuring shops, restaurants and
        residential apartments
      • a new covered civic space in front of the proposed department store

  • More than 28,000 sq m (310,000 sq ft) of new office space with associated
    car parking
  • Significant leisure-uses, including bars, restaurants and entertainment
    facilities
  • 242 residential units including 24 affordable homes in the heart of the
    city centre

  • Masterplanning architects Chapman Taylor, with the assistance of a
    specially commissioned artist and engineer, have designed the unique
    shell-shaped roof which will cover the central area and much of the scheme's
    three new streets. The first of its kind in Europe, the roof will provide
    protection from the elements without losing the open air 'city centre
    experience' - one of the nine key priorities identified by the consultation
    process.

•        The new 2,616-space car park, with its pedestrian bridge leading
straight into the heart of the new Broadmead, will be a spectacular feature in
itself - created by award-winning architects, Wilkinson Eyre, designers of the
acclaimed Gateshead Millennium Bridge and the Explore-at-Bristol building.

•        The landmark four-storey department store will be the subject of a
separate planning application and will have its own specialist architect. It
will be part of the new gateway to Bristol - a dramatic view from the M32 beyond
a reconfigured Bond Street-Newfoundland Street junction towards a cutting-edge
department store.

•        A CPO inquiry, which began on 15 June of this year, was concluded on 6
July. The decision is expected in early 2005.






                      This information is provided by RNS
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