Acquisition

Hammerson PLC
4 March 2002


Hammerson Acquires Shires Shopping Centre, Leicester

Hammerson and Hermes have established a limited partnership which has exchanged
contracts to acquire the freehold of The Shires Shopping Centre, Leicester, from
Haslemere Estates and Hermes for £183 million. Hammerson has a 60% interest in
the limited partnership, the balance of which is held by Hermes. Hammerson will
be responsible for managing the property and advancing proposals for a possible
mixed use extension of up to 35,000 m(2) and improvements to the existing
centre.

The centre is 17% reversionary, with annual rents of £11.5 million, compared
with estimated market rents of £13.5 million. Completion will take place at the
end of March 2002 and Hammerson will finance its £110 million net investment in
the acquisition from its existing resources.

The Shires Shopping Centre was built in 1991 and an extension was carried out in
1994, increasing the size of the scheme to 47,800 m(2). The Shires is a fully
enclosed two level shopping centre anchored by department stores, Debenhams
(14,200 m(2)) and House of Fraser (12,400 m(2)). In addition, there are 76 shop
units and tenants include Boots, Mothercare, Next, USC, Virgin and Waterstones.
There is parking for approximately 900 cars on three levels above the shopping
centre and direct access to a further 850 spaces in an adjoining NCP
multi-storey car park.


Commenting on the acquisition, John Richards, Chief Executive, said:

             'This acquisition is in line with our strategy of investing in
        and developing regional shopping centres. The Shires provides an
        attractive yield, is reversionary and offers considerable potential in
        the medium term for a major extension.'

        Richard Harrold, Head of Property at Hermes, said:

             'We are maintaining a major investment in The Shires and are
        very pleased to be working with Hammerson on this scheme which offers
        scope for improvements in performance through active asset management
        and additional development.'

        Councillor Ross Willmott, Leader of Leicester City Council, said:

             'Hammerson has an outstanding track record of retail-led city
        centre development. We are delighted with the major commitment to
        Leicester that Hammerson has made by its investment and look forward to
        working in partnership with them to bring wider benefits to our City.'

        Hammerson was advised by Donaldsons whilst Haslemere Estates and Hermes
        were advised by CB Hillier Parker and Healey & Baker.

        For further information:

        John Richards
        Chief Executive, Hammerson plc

        Christopher Smith
        Director of Corporate Affairs


                      This information is provided by RNS
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