Option to Acq Northgate Land

Hammerson PLC
01 August 2005

For immediate release - Monday, 1 August 2005


Hammerson Signs Option Agreement to Acquire Northgate, London E1

Hammerson plc has entered into an option agreement with Hackney Council to
acquire the long term leasehold interest in Northgate, London E1, an 8,200 m(2)
(88,300 ft(2)) site which adjoins the group's existing Norton Folgate site.

Hammerson has paid £4.1 million to Hackney Council for an option for three years
to acquire the Northgate land, which currently has planning consent for 71,500 m
(2) (770,000 ft(2)) of office space. Further amounts will be payable to Hackney
Council on exercise of the option and on the granting of planning and the
development and leasing phases of the scheme.

Hammerson has also entered into a contract with Lehman Brothers to terminate the
latter's current option arrangement over the Northgate site with Hackney
Council.

Hammerson's revised proposals for the enlarged Northgate scheme, which will
include the group's adjoining Norton Folgate site, are for a mixed-use
development of 79,000 m(2) (850,000 ft(2)), incorporating around 43,000 m(2)
(463,000 ft(2)) of office accommodation, residential units, a hotel and public
spaces. Hammerson is currently progressing the scheme proposals in consultation
with Hackney Council, with a view to submitting a planning application at the
end of 2005.

Hammerson acquired the Norton Folgate site, which currently has planning consent
for an 18,600 m(2) (200,000 ft(2)) office scheme, as part of its acquisition of
the Railtrack portfolio in 2002. In addition to Norton Folgate, the group has
two further potential office and mixed-use schemes in the area at Bishopsgate
Goodsyard and on Shoreditch High Street.

John Richards, Chief Executive of Hammerson plc, said:

' I believe this area of London provides some of the most exciting development
opportunities for the future. I am delighted to have signed this agreement,
which will allow us to work closely with Hackney Council to bring forward a
major mixed-use development. The project will be a key stage in the regeneration
of this increasingly important area of London, which includes our highly
successful schemes at 280 Bishopsgate and Bishops Square, Spitalfields.'

Councillor Jessica Crowe, Deputy Mayor of Hackney Council, said:

' Hackney Council is pleased to have entered into an agreement with Hammerson
for the development of this strategic site on the edge of Broadgate and
Liverpool Street. The Council will now work closely with Hammerson to bring
forward an innovative mixed-use development for the site. It will not only
benefit the Council financially, but also ensure that regeneration is achieved
in this important area of the city.'


For further information:

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

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

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