Re Joint Venture

Hammerson PLC
13 June 2001

 

Hammerson - Confirmation of Paris Joint Venture 
 
On 18 April 2001, Hammerson exchanged contracts to acquire a 50% interest in
SCI Opera Capucines for FF140 million (£13.4 million).
 
For the record, the appropriate information, which is also posted on the
Company's website, is set out below:
 
'Hammerson plc has exchanged contracts to acquire a 50% interest in SCI Opera
Capucines from leading French insurance company, MAAF Assurances, for FF140
million (£13.4 million). SCI Opera Capucines owns a mixed use building of
approximately 11,000 m2 in a prime Paris location with frontages onto place
de l'Opera, boulevard des Capucines and rue du Quatre Septembre in the second
arrondissement. The property is anticipated to generate a total net rental
income of FF12.6 million (£1.2 million) in 2001 and Hammerson will receive a
50% share of income following completion.
 
The two partners propose to redevelop the buildings behind the existing
facade to create approximately 3,500 m2 of high quality retail space on three
levels and some 4,000 m2 of modern, high specification office accommodation
on five levels. The plans also incorporate 3,000 m2 of residential units and
55 car parking spaces.
 
Hammerson will work with MAAF to secure the necessary approvals and building
permits and will be responsible for managing the subsequent redevelopment. It
is anticipated that a construction period of approximately two years will
start in mid 2004. Hammerson's total costs are estimated at approximately
FF340 million.
 
Commenting on the transaction John Richards, Chief Executive, said
 
'The proposed building is in a first class location both for shopping and
offices where our research shows continuing strong occupier demand. We are
delighted to have been selected by MAAF to work with them in this exciting
joint venture.'

This announcement follows the recent successful completion of Hammerson's
redevelopment of 54 boulevard Haussmann, Paris 9eme, a 12,900 m2 retail
building. Following the acquisition, Hammerson's French assets will account
for approximately 25% of the group's total portfolio. Hammerson is also
currently involved in another joint venture to redevelop 9 place Vendome,
Paris 1er.'
 
For further information:
 
John Richards                                        Tel: [phone]
Chief Executive
 
Chris Smith
Director of Corporate Affairs
 
Gerard Devaux                                   Tel: [phone]
Director Continental Europe