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Acquisition

31.08.1999

RNS No 6937k
HAMMERSON PLC
31 August 1999


Hammerson Acquires Central London Office Properties

Hammerson  has acquired 18 and 19 Hanover Square, London W1 from Skandia  
Life
Insurance Company Ltd (PUBL) at a purchase price of £32.9 million.

18   Hanover  Square  comprises  36,000  sq.  ft.(3,340  sq.  m.)  of   office
accommodation held on a long lease (110 years unexpired) at a ground  rent  of
6%  of  rents  receivable.   It is multi-let to six  tenants  producing  £1.22
million  per  annum on leases predominantly expiring in 2006  and  2008.   All
leases contain mutual options to break in June 2003.

19   Hanover  Square  comprises  26,000  sq.  ft.(2,400  sq.  m.)  of   office
accommodation  and is freehold.  The building is let in its  entirety  to  PIC
Fyfield  Ltd until June 2003 at £925,000 per annum with a rent review in  June
2000.

There  is a resolution to grant planning consent for the redevelopment of  the
two  buildings  to  provide  82,000 sq. ft.(7,620 sq.  m.)  of  accommodation,
incorporating a potential Cross Rail station.

Commenting  on  the acquisition, Ronald Spinney, Hammerson's Chief  Executive,
said:

     'The two buildings, fronting onto one of the most sought after squares in
     London's  West  End,  provide us with reversionary income  potential  and
     interesting asset management opportunities.  In the longer term there  is
     scope for a refurbishment or major redevelopment.  Our forecasts indicate
     continuing strong demand for prime West End office accommodation.'

Matthew Bolton, Managing Director of Skandia Property Asset Management (UK)
commented:

     'These  properties  have generated very satisfactory returns  during  the
     period  of  Skandia's ownership and their sale is part  of  a  continuing
     process of rationalization within our UK and European portfolios.'

Hammerson was advised by Healey & Baker and Skandia Life was advised by 
Jones
Lang LaSalle.


For further information:

Ronald Spinney                                              Tel: 0171 887 1000
Chief Executive                                             Fax: 0171 887 1010

Christopher Smith
Director of Corporate Affairs

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