Acquisition of Paris Investment Property

Hammerson PLC
6 March 2000


Hammerson - Acquisition of Paris Investment Property

Hammerson  plc has exchanged contracts to acquire SCIPAR Madeleine,  a  French
company  which  owns Les Trois Quartiers, 21 boulevard de la Madeleine,  Paris
1er,  a  28,500  sq  m  freehold mixed use offices and  retail  property.  The
acquisition price is £122 million (FF1.3 billion), which will be financed from
Hammerson's existing resources.  The initial yield is 5.75%.  SCIPAR Madeleine
has tax losses which should be available to Hammerson France.

Constructed in 1991, the property occupies a prominent site at the junction of
boulevard de la Madeleine and place de la Madeleine at the heart of the  prime
business  district in Paris.  The area attracts large numbers of tourists  and
shoppers  and  is  rapidly improving as a retail location.  The  building  has
three  levels of basement car parking, providing 194 spaces, and is  extremely
well served by public transport including a direct link to the Madeleine metro
station.

The 17,300 sq m of office space, on second to seventh floors, is leased to  14
tenants,  the three largest of which are Barclays Bank, ING Bank  and  Robeco,
and  which occupy a total of 8,200 sq m.  The offices generate total rents  of
£4.5   million  (FF48.3  million)  and  the  rent  roll  is  reversionary   by
approximately 10%.

The 11,200 sq m of retail space (on the ground, first and basement floors)  is
occupied by 19 tenants and generates an annual rent roll of approximately £2.8
million  (FF29.5).   The principal tenants are Madelios, an established,  high
quality menswear business and Decathlon, the sports goods chain, which  occupy
4,800  sq  m  and 4,200 sq m respectively.  Both these leases are reversionary
and  the Decathlon lease contains a provision for an additional payment  based
on turnover.

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

     'This  acquisition  is in line with our strategy of  securing  additional
     investment  properties in continental Europe.  Following the acquisition,
     the  French  portfolio will account for approximately 25%  of  the  group
     total.

     Les  Trois  Quartiers  is a well located investment  property  where  the
     majority  of  existing leases are already reversionary in an  area  where
     office  and retail rents are continuing to grow. Prospects for the  Paris
     property  investment   market remain good with continuing  strong  demand
     both from French and international investors.'

Hammerson  was advised by The Retail Consulting Group and FPD Savills,  whilst
the vendors were advised by Jones Lang LaSalle.

For further information:

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

Chris Smith                                              Tel:  [phone]
Director of Corporate Affairs                            Fax:  [phone]
Hammerson plc