Queensgate Shopping Centre

Hammerson PLC
17 November 2005


Hammerson Acquires Interest in Queensgate Shopping Centre, Peterborough

Hammerson plc has acquired a 50% interest in the freehold of Queensgate Shopping
Centre in Peterborough from Norwich Union Life & Pensions for a total
consideration of £156 million.

Constructed in 1982, Queensgate Centre is a fully enclosed two level shopping
centre providing approximately 75,000 m(2) (807,000 ft(2)) of retail
accommodation anchored by John Lewis, Waitrose, Marks & Spencer and Bhs. The
centre provides a further 127 shop units and 2,300 car parking spaces. The
property generates a total net rental income of approximately £16.6 million per
annum and is 15% reversionary.

Hammerson and Norwich Union now own the centre through a 50:50 joint venture.
The parties have worked together over the last three years in partnership with
the City Council and plan to carry out a major expansion of the centre by
redeveloping the adjacent site at North Westgate, a planning application for
which will be made during 2006. Part of the land to be redeveloped is also owned
by the joint venture. Hammerson will be the asset and development manager for
the joint venture. The existing centre will also be subject to a major
refurbishment.

The extension will provide additional accommodation of approximately 60,000 m(2)
(646,000 ft(2)), including a new shopping street leading from the existing
Queensgate Centre to a new anchor store. The scheme will also incorporate
restaurant and catering accommodation around a new city square, together with
residential accommodation and an additional 900 car parking spaces. Following
completion of North Westgate, the Queensgate Centre will total approximately
135,000 m(2) (1,450,000 ft(2)), with 3,200 car parking spaces, making it one of
the largest retail centres in the UK.

John Richards, Chief Executive of Hammerson plc, said:

' This acquisition reflects Hammerson's strategy of investing in dominant
shopping centres in strong retailing locations. We see scope to improve this
prime asset through a combination of pro-active management and the development
of additional retailing accommodation to address the needs of retailers seeking
representation in the City. Peterborough's population is growing at one of the
highest rates in the UK, making it an extremely attractive city in which to
invest.'

Ian Womack, Managing Director Property of Morley Fund Management, which acts as
Asset Manager on behalf of Norwich Union, said:

' Morley Fund Management has been working closely with Hammerson on the future
development of Queensgate for the last three years. This partnership combines
Morley's fund management leading edge expertise with Hammerson's pre-eminent
track record in property development and, we believe, will unlock significant
value for our clients.'

Councillor Ben Franklin, Leader of Peterborough City Council, said:

' The City Council has been working with Hammerson and Morley on this scheme for
some time and will continue to do so. We have been impressed with the commitment
of Hammerson and Morley in developing their North Westgate plans with us over
the last three years. We see Hammerson's investment in the City as a significant
step forward in achieving a key element of the City's masterplan and are
delighted that Hammerson has joined Morley in this joint venture given its
unrivalled track record of regenerating city centres.'

For further information:

John Richards, Chief Executive, Hammerson plc               Tel:  [phone]

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


Notes to Editor

1.                  The North Westgate scheme is one of ten key developments
identified by Peterborough City Council's city centre framework, which is
anticipated to attract over £750 million of investment over the next 20 years.

2.                  Total development costs for the scheme are estimated at
circa £350 million. It is anticipated that a planning application will be
submitted for the scheme during 2006 and that a start on site could be made in
2008/09 with practical completion three years later.

3.                  Hammerson plc is a leading European real estate investment
and development company. Established over 50 years ago, the group has operations
in the UK, France and Germany. Its high quality portfolio provides over
1,300,000 m(2) of retail space and nearly 280,000 m(2) of prime offices and is
valued at over £4.8 billion.

4.                  Hammerson has a track record of carrying out successful
major regeneration and development schemes. The group's recent projects have
included The Bullring in Birmingham. Hammerson is also carrying out the
redevelopment of the Merchants Quarter, Bristol through the Bristol Alliance.

5.                  Further information on Hammerson is available at
www.hammerson.co.uk.


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