Acquisition

Hammerson PLC
27 December 2002


For immediate release - Friday, 27th December 2002


Hammerson to Acquire Railtrack Property Interests


Hammerson plc has exchanged contracts to acquire for £63 million RT Group
Developments Limited ('RGDL') and its associated companies from RT Group PLC
(formerly Railtrack Group plc). These companies own interests in a portfolio of
24 properties/development sites throughout the UK.


Hammerson has also exchanged contracts with Ballymore Properties Limited, a
private development company based in Dublin, whereby Ballymore will purchase
from Hammerson seven of the properties owned by RGDL for £27 million. Following
these sales, Hammerson will retain direct ownership of 15 of the properties. In
respect of the two remaining properties, Hammerson will receive £5.625m and
enter into joint venture agreements with Ballymore to evaluate and pursue
possible future major developments on a 50:50 basis. The seven staff currently
employed by RGDL will become employees of Ballymore.


The principal assets to be acquired and retained by Hammerson are:

-     Two freehold warehouses of around 7,100m2 and a 50% interest in Cricklewood Redevelopment Limited (a
      joint venture with Pillar Property PLC), which is proposing a mixed use development of around 800,000m2
      at Cricklewood, London NW2;

-     two development sites with potential for around 20,000m2 and 30,000m2 respectively of offices in London
      E1 to the north of Broadgate and close to Hammerson's existing major office redevelopment scheme at
      Bishop's Square;

-     the long leasehold interest in Victoria Station, London SW1.


The proposed 50:50 joint venture agreements between Hammerson and Ballymore are
in respect of:

-     a conditional contract to acquire Bishopsgate Goods Yard, London E1, where there is potential to create a
      mixed-use office, retail, leisure and residential scheme of up to 200,000m2 on a site of 4.25 hectares
      (10.5 acres);

-     The Triangle Site, Bishop's Bridge Road, London W2, where the partners intend to explore the
      redevelopment of a site adjacent to Paddington Station to create around 20,000m2 of offices.


A list of the properties to be acquired by Hammmerson and those to be sold to
Ballymore is attached. The properties to be acquired and retained by Hammerson
generate an annual rental income of approximately £600,000.


John Richards, Chief Executive of Hammerson, said:


'This is a very exciting transaction for Hammerson which, for a net investment
of around £30 million, gives us control of some key sites in central London. These sites
represent a substantial long term development land bank. We intend to work up these schemes
and advance them as market conditions improve over the next few years.


In particular, the interest we have acquired in the Cricklewood site complements
the group's existing ownership of Brent Cross Shopping Centre and will support a
co-ordinated approach to the regeneration and improvement of this area.

We look forward to working with Network Rail and Ballymore to capitalise on
these opportunities.'


Hammerson was advised by Insignia Richard Ellis and Ballymore was advised by
Alan Selby & Partners. Deloitte & Touche, the Liquidator of RT Group PLC, was
advised by Jones Lang LaSalle.


For further information:


John Richards                                                 Tel: [phone]
Chief Executive

Christopher Smith                                             Tel: [phone]
Director of Corporate Affairs                                 Tel: [phone]


Notes to Editors:

Hammerson plc


Hammerson 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 700,000 m2 of retail space and
nearly 300,000 m2 of prime offices and is valued at over £3.5 billion.


Hammerson has a track record of carrying out successful major regeneration and
development schemes. The group's recent projects have included The Oracle
Shopping Centre in Reading, winner of numerous awards, and 280 Bishopsgate,
London EC2, a   25,000 m2 office building. Hammerson is the development manager
for the Birmingham Alliance, which is carrying out the redevelopment of the
Bullring, Birmingham, currently Europe's largest retail led urban regeneration
project.


Ballymore Properties Limited


Ballymore Properties Limited, with headquarters in Dublin and London, has been
involved in urban development and regeneration for over 20 years. It focuses its
expertise on three key areas: investment handling; design and build projects;
and property acquisition.


Ballymore's diverse portfolio comprises residential housing schemes,
retail-related investment projects, commercial and office developments, and
projects in the leisure and tourist sector.


Properties to be acquired from Railtrack Developments Limited


Property                  Type                     Indicative Scheme          Description
                                                   Size/Area


Properties to be retained by Hammerson


Cricklewood Town Centre   Mixed use/retail &       800,000m2                  Master plan major redevelopment in
                          leisure                                             joint venture with Pillar Property
                                                                              PLC
                          2 Freehold Warehouses
                                                   7,100 m2


Norton Folgate,           Office                   20,000m2                   Office plot next to 201
                                                                              Bishopsgate, London
London E1

Shoreditch High Street,   Office                   30,000m2                   Office plot opposite Norton
                                                                              Folgate, London
London E1

Victoria Station,         Mixed use/retail &       0.5 ha                     Shared value opportunity with
                          leisure                                             rental income
London SW1                                         (1.2 acres)

Union Square, Aberdeen    Mixed use/retail &       40,000m2                   Redevelopment of town station
                          leisure                                             goods yard site in 50% JV with
                                                                              Stannifer

London International      Rail freight             220,000m2                  Joint venture (20% interest with
Freight Exchange                                                              Argent (Hermes) to create major
                                                                              freight base transport hub on 450
                                                                              acre site near Heathrow


Strategic Holdings


Various Interests         Residential - Mixed Use  17 ha                      Mixed use rail associated schemes
associated with Rail
schemes in Glasgow,                                (41 acres)
Manchester, Southport,
Richmond, Redhill,
Haywards Heath,
Christchurch, New
South-gate, Staplehurst


Joint ventures - Hammerson/Ballymore


Bishopsgate Goods Yard    Mixed use/retail &       200,000m2                  Conditional contract to purchase
                          leisure                                             goods yard site

Paddington Triangle       Office                   20,000m2                   Triangle site next to main station


Properties to be purchased by Ballymore


Central Station, Luton    Mixed use/retail &       13,000m2                   Redevelopment of car parks and
                          leisure                                             existing buildings next to station

Snow Hill, Birmingham     Office/residential       45,000m2                   Office development with
                                                                              residential site

Bristol Temple Meads      Office                   28,000m2                   Redevelopment of area adjacent to
                                                                              station

Cambridge Gate, Station   Office                   5,000m2                    Single building office development
Road, Cambridge

Hayes                     Residential              24,000m2                   Canal side residential and retail
                                                                              development

Central Station,          Mixed use/retail &       14,000m2                   Retail and leisure scheme over
Liverpool                 leisure                                             Central Station.

West Hampstead            Residential/mixed use    1 ha                       Development of site next to West
                                                                              Hampstead Station
                                                   (2.4 acres)



                      This information is provided by RNS
            The company news service from the London Stock Exchange