AGM Statement

Hammerson PLC
08 May 2003






Extracts from the Chairman's Address to Shareholders at the Annual General
Meeting of Hammerson plc - Thursday, 8 May 2003

At the Annual General Meeting of Hammerson plc held on Thursday, 8 May 2003,
shareholders approved a final dividend of 10.99 pence to be paid on 15 May. This
makes a total dividend for the year of 15.8 pence, an increase of 6.5%.

Speaking at the meeting, the Chairman, Ronald Spinney, said:


        '     The rate of increase in the dividend for 2002 has been somewhat
        higher than that in recent years. This reflects the Board's continuing
        confidence in Hammerson's potential and our awareness of the importance
        that investors place on a robust and growing dividend.

             2002 proved to be one of the most active years on record for the
        group. Altogether, we invested over £850 million and raised £520 million
        from property disposals. Recycling capital is an important way in which
        the group creates shareholder value.

             In these more uncertain markets, Hammerson is not being deflected
        from its strategy of focusing on prime retail and office properties in a
        small number of key European markets. The group's high quality portfolio
        provides a robust rental stream and potential for continuing income
        growth over the next few years. The risks of the development programme
        are being carefully managed. At the same time, the group is well placed
        to bring forward further developments as and when market conditions
        improve. I am therefore confident that Hammerson will continue to
        achieve good returns in the future.

        Since the year end, Hammerson has started the preliminary works for the
        construction of Bishops Square, London, EC2 in a joint venture with The
        Corporation of London. The leading international firm of lawyers, Allen
        & Overy, has signed a 25 year lease for the entire 65,000 m2 of office
        space in the proposed building, in what represents the largest ever
        single pre-letting in the City. Hammerson's share of the total costs of
        this scheme will be of the order of £300 million.

        The redevelopment of the Bullring in Birmingham is proceeding apace.
        Europe's largest retail led regeneration project, the 110,000 m(2)
        scheme will open on 4 September this year. Over 85% of the projected
        retail income has now been secured or is in solicitors' hands and we are
        therefore well on the way to achieving our target of being about 95% let
        on opening.




        Several other significant events have taken place since the start of the
        year. In March, two office properties in central London, Globe House and
        16 Old Bailey, were sold for a total of £192 million in cash. Hammerson
        also sold a retail warehouse in Romford for £21 million. The property
        was one of those acquired by Hammerson through its purchase of
        Grantchester Holdings PLC last September. Today, I am pleased to
        announce the sale of 53 Quai d'Orsay in Paris for £74 million. Completed
        last year, this office property shows us a development profit of around
        £10 million. These sales indicate the continuing demand for prime
        property let to good covenants.

        Hammerson's financial position remains strong. The group has a sound
        balance sheet and it continues to have access to finance on attractive
        terms both from the banking market and the international capital
        markets. During 2002, Hammerson arranged a new £215 million five year
        unsecured facility with a syndicate of leading international banks. At
        the year end, the group had cash and undrawn facilities of over £500
        million and the average maturity of the group's debt was eight years.

        It remains our intention that financial resources, when not required in
        the business, will be returned to shareholders in the most efficient
        manner, through dividends or purchases of the Company's own shares.



        I am pleased to announce the appointment today of David Edmonds as a
        non-executive director of the Company. Mr Edmonds is Director General of
        Telecommunications (more usually known as 'Oftel'), a position he has
        held since March 1998, and a Member of the Board of Ofcom, the Office of
        Communications. He is also a Council Member, University of Keele and a
        Board Member of English Partnerships. I am delighted to welcome David
        Edmonds to the Board. He has very broad experience both of the public
        and private sectors. I am sure that he will make a major contribution to
        Hammerson.'





For further information:

Ronald Spinney                                    Tel: [phone]

Chairman

Christopher Smith                                 Tel: [phone]

Director of Corporate Affairs                     [e-mail]


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