Peterborough Redevelopment

Hammerson PLC
06 March 2003





Morley and Hammerson and Selected for Peterborough Redevelopment

Morley Fund Management and Hammerson plc were yesterday appointed as the
preferred development partners by Peterborough City Council to implement a major
regeneration project of the North Westgate area and the refurbishment and
expansion of the Queensgate Shopping Centre in Peterborough.

The Queensgate centre was developed in 1980 by the Peterborough Development
Corporation with funding from Norwich Union Investment Management, now Morley
Fund Management. The centre, which is anchored by John Lewis and Marks &
Spencer, currently provides around 75,000m(2) (800,000ft(2)) of retail
accommodation on two trading levels and 2500 car parking spaces.

The proposals involve a major refurbishment of the existing centre and a mixed
use extension of around 45,000m(2) (500,000 ft(2)) on the adjoining North
Westgate site.

Hammerson has been appointed development manager by Morley and will be
responsible for working with the Council, advancing design development and
planning, and handling site assembly and project management. Architects for the
project are Benoy.

The development will be designed and reviewed to ensure that it forms an
integral part of the Masterplan being prepared for Peterborough by the City
Council. It is anticipated that a planning submission could be made early in
2004, with site assembly concluded by 2006 and completion of the project in
2009.

Ian Womack, Property Managing Director at Morley Fund Management said:


        'We are delighted to be given the approval to further develop the
        Queensgate Shopping Centre in Peterborough. Norwich Union has owned
        Queensgate since 1982 and this demonstrates its continued commitment to
        long term investment in Peterborough. Morley has an excellent track
        record in selecting the right joint venture partners for the right
        projects and to this end Hammerson is our number one choice.'

Peter Cole, Development Director of Hammerson, commented:


        'Peterborough is a city with a strong and growing catchment population.
        Our proposed scheme offers the potential to ensure Peterborough
        continues to develop and meet future expectations as a regional shopping
        destination. We look forward to working with both Morley and the Council
        on this major initiative which forms an integral part of the city's
        Masterplan.'



Gillian Beasley, Chief Executive, Peterborough City Council commented:


        'We have chosen Morley and Hammerson as our preferred developer as their
        scheme achieves two key objectives, which we have highlighted in our
        Masterplan for the city centre. Firstly, the regeneration of North
        Westgate and secondly, the remodelling and enhancement of Queensgate. We
        are excited about the proposals and the opportunities they offer and
        look forward to working with our private sector partners to make the
        vision for Peterborough's future a reality.'

Morley and Hammerson are being advised by C B Hillier Parker.

Morley and Hammerson are currently partners (together with Land Securities and
Henderson Global Investors) in the redevelopment of the Broadmead retailing area
of Bristol.






        For further information:

        John Richards      Tel: [phone]

        Chief Executive

        Hammerson plc

        Chris Smith      Tel: [phone]

        Director of Corporate Affairs

        Hammerson plc

        Chris Paterson     Tel: [phone]

        Fund Manager

        Morley Fund Management

        Fiona Baker      Tel: [phone]

        Head of Corporate Communications

        Morley Fund Management

        Jennie Kendall      Tel: [phone]

        Principal Corporate Communications Officer

        Peterborough City Council





Notes to editors


  • Hammerson plc is a leading European real estate company with operations in
    the UK, France and Germany. The group's property portfolio, which is valued
    at around £4 billion contains 24 shopping centres and 15 retail parks and
    warehouses, providing over 10,000,000 million square feet of retail space.
    Major regional shopping centres developed by Hammerson in recent years
    include The Oracle in Reading and West Quay in Southampton, both of which
    have won numerous awards. The group is currently an investor in, and
    development manager for, the redevelopment of Bullring in Birmingham,
    currently Europe's largest retail-led city centre regeneration project,
    which opens in September this year.

  • Morley Fund Management ('Morley') is an independently managed, London
    based, asset management business with over £105 billion under management (as
    at 31.12.02). It actively manages a diverse range of asset classes and has
    investment management operations in London, Tokyo and Singapore and an
    associate office in Boston.


    Morley is a wholly owned subsidiary of the Aviva Group and manages both
    institutional and retail funds under the Morley brand. It also acts as
    investment manager for a range of retail investment funds, marketed in the
    UK by Norwich Union, and international funds marketed under the Privilege
    Portfolio brand.

    The property team at Morley manages in excess of €16 billion (£10 billion)
    of UK Property assets (as at 31.12.02), making Morley one of the largest
    property fund managers in the UK. The team consists of over 50 investment
    professionals and manages a range of funds, including segregated and pooled
    pensions as well as a retail unit trust. The funds range across standard and
    non standard property investments and include, amongst others, a
    regeneration fund and a PFI fund. Morley has been at the forefront of
    innovation in limited property partnerships and has launched six other
    specialist sector based funds, including the Ashtenne Industrial Fund, The
    Junction and The Mall Fund.



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