AGM Statement

Hammerson PLC
9 May 2002


Extracts from the Chairman's Address to Shareholders at the Annual General
Meeting - Thursday, 9 May 2002

Speaking at the Annual General Meeting of Hammerson plc held on 9 May 2002, the
Chairman, Ronald Spinney, said:

            'Since Hammerson's preliminary announcement at the beginning of
            March, there have been several significant events. At Bishop's
            Square, London EC2, we have achieved what we believe is the largest
            ever single pre-letting in the City. The leading international firm
            of lawyers, Allen & Overy, has agreed conditional terms for a 25
            year lease of the entire space in a proposed 70,000 m2 office
            building to be constructed by Hammerson in a joint venture with The
            Corporation of London.

            In April, Hammerson announced the disposal of 280 Bishopsgate in the
            City for £219 million to show a development surplus of £118 million,
            a very successful outcome.

            More recently the group has launched 'Onestep', a new product
            designed to assist retailers expand internationally. Onestep enables
            retailers considering expansion into a new overseas market to take
            space in a Hammerson centre, whether in the UK, France, or Germany,
            with an initial commitment of as little as two years and a very
            straightforward agreement. Interest is already encouraging and the
            scheme should help Hammerson attract exciting retailers to its
            shopping centres, increasing their appeal to consumers.

            Towards the end of 2001, the Company purchased 15.6 million of its
            own shares, representing some 5.3% of the shares then in issue, at
            an average price of 448 pence and a total cost of £70 million. It
            remains our intention that financial resources, when not required by
            the business, will be returned to shareholders in the most efficient
            manner, through dividends or purchases of the Company's own shares.

            Perhaps I could say a word or two now about our markets.
            For the second consecutive year, commercial property in the UK and
            on the continent performed more strongly than other asset classes.

            Both in the UK and France, consumer spending has remained buoyant
            and continues to polarise towards strong regional shopping centres
            of the type owned by Hammerson. The outlook for further growth in
            rents and values in Hammerson's retail portfolio appears
            encouraging.

            With regard to office markets, the current availability of prime
            modern office accommodation is limited and the future supply
            relatively modest. Whilst occupational demand has cooled somewhat
            from the buoyant conditions of 12 months' ago, the potential for a
            resumption of rental growth and capital values in both central
            London and central Paris is good.

            In summary then, the fundamentals in the group's principal markets
            are attractive. Hammerson has a clear strategy of focusing on prime
            retail and office properties in Europe. Its high quality portfolio
            provides a secure revenue and potential for considerable income
            growth over the next three years. The development programme is an
            exciting one and management has demonstrated its ability to secure
            attractive new development opportunities. I have every confidence
            that Hammerson will continue to achieve good returns in the future.'


For further information:

John Richards                                         Tel: [phone]

Chief Executive                                       Fax: [phone]

Christopher Smith

Director of Corporate Affairs


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