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Acquisition

14.09.1999

RNS No 3872f
HAMMERSON PLC
14 September 1999


Hammerson Exchange of Contracts to Acquire 51/53 Quai
d'Orsay and 8/12 rue Surcouf, Paris 7e

Hammerson  has  exchanged  contracts  to  acquire  for  FF
667  million   the headquarters  buildings  of La Seita (the
former French  State  owned  tobacco company).   The initial
consideration is FF67 million.

The  site  is located in the prestigious seventh
arrondissement of  Paris  and comprises two adjacent office
buildings. Over the next twelve months Hammerson will
advance  detailed  planning and other  authorisations  with
a  view  to carrying  out  a  major  refurbishment of the
1930's building  at  51-53  Quai d'Orsay and a redevelopment
of the 1960's building  8-12 rue Surcouf. La Seita is  due
to relocate to new headquarters at the end of 2000 at which
time  the 90% balance of the purchase price will be
payable.

Works  are  planned  to  start in January 2001 to  create
two  modern  office buildings of 9,800 sq. m.and 11,900 sq.
m.with completion scheduled  for  July 2002.  Total
development costs, including site acquisition,  will  amount
to approximately FF 1.1 billion.

Commenting  on  the purchase, Ronald Spinney, Chief
Executive, Hammerson  plc, said :

    'This   is  an  excellent  opportunity  to  create  high
    quality   office accommodation  in this prestigious
    location overlooking the  River  Seine. It  follows  on
    from our successful redevelopment of 40 rue de
    Courcelles, Paris  8e,  which created 17,700 sq. m.of
    offices which were  let  earlier this year to ABN Amro.
    Our forecasts demonstrate a continuing shortage  of
    prime office space in central Paris'.
    
For further information:

Ronald Spinney                          Tel:  0171 887 1000
Chief Executive

Christopher Smith
Director of Corporate Affairs

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