Acquisition

Hammerson PLC
14 September 2004


For immediate release - Tuesday, 14 September 2004


Hammerson Increases Interest in London Office Development



Hammerson plc has exchanged contracts to acquire, for an anticipated £52
million, Greycoat Estates Limited's one-third interest in the Moor House Limited
Partnership, which owns the major office development of Moorhouse in London EC2.
The acquisition will increase Hammerson's interest in Moorhouse to 66.7%. The
other one-third interest in the partnership is held by Henderson Global
Investors on behalf of Pearl Assurance.



The purchase will be completed no later than 31 January 2005, upon which
Hammerson will make a cash payment to Greycoat of £18 million and assume the
latter's third party debt obligations in relation to Moorhouse, which are
estimated to be £34 million. Under the terms of the transaction, Greycoat may be
entitled to further payments, capped at £3 million, based on the profitability
of the completed development.



The acquisition will be financed from Hammerson's existing financial resources.
Hammerson's estimated total development cost for the scheme, in respect of its
66.7% interest, is £121 million.



Designed by Foster and Partners, Moorhouse occupies a prominent site at the
junction of London Wall and Moorgate in the City of London. The landmark office
development is a 30,500 m(2) (328,300 ft(2)), 17 storey building, providing
floors of between 1,250 m(2) and 1,905 m(2) (13,500 ft(2) and 20,500 ft(2)).
Completion of the development is scheduled for November of this year. The
partners have adopted a multi-letting strategy and marketing of the office
accommodation will begin early in 2005.



John Richards, Chief Executive of Hammerson plc, said:



       'We are pleased to have increased our interest in this major office
development, which will be completed at a time when we expect to benefit from an
improving occupational market. Moorhouse is an outstanding property with a high
specification and which offers flexible accommodation in a first class location.
The building will appeal to a wide variety of potential occupiers.'



For further information:

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

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





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