Hammerson - Retail Sale - Fforest-fach Retail Park, Swansea

Date: 10 Sep 2002

Hammerson plc has exchanged contracts to purchase the freehold of Fforest-fach Retail Park, Swansea from Stadium Group for £57.7 million. The initial payment is £34.8 million with the balance payable by May 2003. The 13,400m² (145,000ft^ft) scheme is currently under construction and is due for completion later this month. The anticipated total rental income is approximately £3.4 million per annum of which 62% is committed. The acquisition, which will be financed from Hammerson's existing resources, represents the group's first investment in the retail park sector.

Fforest-fach is located north-west of Swansea, close to Junction 47 of the M4 motorway and the city cetre. Approximately 440,000 people live within half an hour's drive time and 1.5 million people live within an hours drive.

The scheme, which has the benefit of an Open A1 retail classification, will provide 14 units ranging in size from 400 m² to 2,000 m². There are 500 car park spaces. Retailers already signed include Borders, JJB Sport, Next, Arcadia, WH Smith, Birthdays and Pizza Hut. Adjacent to the park there is a 100,000 ft² Tesco Extra store which opened in September 2001.

John Richards, Chief Executive of Hammerson, commented:
"The retail warehouse sector has performed very strongly over the past few years and we believe that it continues to offer excellent growth potential. Our strong contacts with retailers will enable us to capitalise on the substantial synergies between prime retail parks and our shopping centres. We are reviewing further selected opportunities in the sector, both in the UK and continental Europe."

Hammerson was represented by Harvey Spack Field. The vendor was represented by Stockford Staunton and the Smith Young Partnership.

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