Disposal

Hammerson PLC
27 June 2005

For immediate release - Monday, 27 June 2005





Hammerson - Sale of Neo, 14 boulevard Haussmann, Paris 9eme for £179 million



Hammerson plc has sold Neo, 14 boulevard Haussmann, Paris 9eme, to KanAm Grund
Kapitalanlagegesellschaft mbH, a German fund, raising net cash proceeds of £179
million (€269 million). The freehold 26,700 m(2) office property was completed
in September 2003.



The principal occupier of Neo, 14 boulevard Haussmann is La Societe du Figaro,
the leading French newspaper. Additional tenants include: the Embassy of the
United States of America; CCF, a subsidiary of HSBC Holdings plc; De Fursac; and
Societe Hoteliere Lutetia Concorde. The property currently produces a passing
rental income of £10.4 million (€15.6 million) per annum.



The sales proceeds were 5% below the original cost of the building, but 19%
above the valuation of the property at 31 December 2004.



John Richards, Chief Executive of Hammerson, said:



'The occupational market in Paris proved to be considerably weaker than we
envisaged when we started the development of Neo. However, the investment market
in Paris for prime offices has remained buoyant enabling us to recycle the
proceeds from this property. Hammerson has a substantial pipeline of future
development opportunities, both in the retail and office sectors, and the
proceeds will be invested in other projects offering good growth potential.'



Hammerson was advised by Strategies and Corp.




For further information:

John Richards, Chief Executive                          Tel:  [phone]

Gerard Devaux, Managing Director, Continental Europe    Tel:  [phone]
                                                                           

Chris Smith, Director of Corporate Affairs              Tel:  [phone]

                                                          [e-mail]






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