Sale of French Property

Hammerson PLC
27 June 2007


SALE OF 9 PLACE VENDOME, PARIS 1ER
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Hammerson and AXA REIM France have signed a conditional agreement to sell their
shares in SAS 9 place Vendome, the joint venture company which developed and
owns the major office building at 9 place Vendome, Paris 1er. Completion of the
sale is scheduled for 9 July 2007 and the purchaser, SAS Sloane place Vendome,
has paid a non-refundable deposit of £13 million (€20 million).

The purchaser will pay £226 million (€335 million) for the shares. This
represents a net underlying property price of £415 million (€616 million) less
deductions for shareholder loans and other net liabilities in the company.
Taking into account acquisition fees, the net yield to the purchaser is below
3.5%.

Hammerson will record net proceeds of £207 million (€307 million) on the
disposal of its 50% interest in the underlying property to give a surplus of £35
million (€53 million) over its 31 December 2006 value.   On Hammerson's
development cost of £90 million (€133 million) its surplus is £117 million (€174
million) or 130%.

This is Hammerson's only French property which is outside the SIIC tax exempt
regime. Hammerson will provide for £18 million (€26 million) of French capital
gains tax on the sale of shares and release deferred tax of £29 million (€43
million).

Hammerson has been the development manager to the 50:50 joint venture, which was
formed in 1999. The scheme was completed in May 2006 and provides 22,200 m(2) of
prime office accommodation, occupied principally by Clifford Chance, and 5,500 m
(2) of retail space. Total rental income from the building on completion of
lettings and the expiry of rent-free periods is projected to be £15 million (€23
million) per annum.

The proceeds of the sale will be reinvested in Hammerson's development programme
and further acquisitions in France.

John Richards, Chief Executive said:

'Hammerson is delighted to have had the opportunity to work with AXA REIM France
on this highly profitable scheme.

The success of the development of 9 place Vendome demonstrates Hammerson's
development skills: this was a complex project, carried out on a sensitive site
in a prestigious location.

This disposal is in line with Hammerson's policy of recycling capital from
assets where we have added substantial value into new opportunities. We expect
to make an announcement on further investment in France in the near future.'

Enquiries:
---------

John Richards, Chief Executive                                      Tel:  [phone]
Gerard Devaux, Managing Director, Continental Europe                Tel:  [phone]
Christopher Smith, Director of Corporate Affairs                    Tel:  [phone]
                                                                    [e-mail]

Notes to Editors:
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Hammerson plc
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Hammerson plc is a leading European REIT (LSE: HMSO). Established over 50 years
ago, the group has operations in the UK and France.  Its high quality real
estate portfolio provides around 1,200,000m(2) of retail space and 270,000m(2)
of prime offices and is valued at nearly £7 billion.  In recent years the group
has carried out a number of high profile office developments in the City of
London and central Paris. It currently has a development programme of nearly £1
billion and a longer-term development pipeline of some £5 billion. For more
information, visit www.hammerson.com.


AXA REIM
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AXA REIM, a wholly owned subsidiary of AXA IM Group, is a specialist in real
estate fund management with around €42 billion* of assets under management. AXA
REIM has an extensive pan-European real estate infrastructure, with over 460
staff based in 12 offices and operating in 17 countries. As such, it is one of
Europe's largest and most diversified real estate investment management
businesses providing extensive multi-disciplinary expertise across a broad
variety of property types. Furthermore, AXA REIM expanded its geographical
capabilities into Asia during 2006 by opening an office in Tokyo and also
establishing a presence in Singapore, and into Scandinavia early 2007 opening an
office in Stockholm. Visit 


*Source AXA REIM as at 31 March 2007.

                      This information is provided by RNS
            The company news service from the London Stock Exchange