SRI INVESTOR TOUR 29 May 2008
PORTFOLIO As at 31 December 2007 Total portfolio: £7.3 billion UK Offices 22% UK Shopping Centres 32% France Offices 5% UK Retail Parks 17% France Retail 23% Germany Retail 1% Total portfolio: £6.7 billion Average unexpired lease term 10.5 years Occupancy rate 98.2% Investment portfolio 6.6% reversionary 2
PROPERTIES DEVELOPED BY HAMMERSON WestQuay, Southampton The Oracle, Reading Total portfolio: £7.5 billion Bullring, Birmingham Bishops Square, London E1 3
CURRENT DEVELOPMENTS 60 Threadneedle Street, London EC2 Parinor, Aulnay-sous-Bois Cabot Circus, Bristol 125 Old Broad Street, London EC2 4
FUTURE DEVELOPMENTS Sevenstone, Sheffield Bishops Place, London E1 Les 3 Fontaines, Cergy - Pontoise Cricklewood, North London 5
THE HAMMERSON CYCLE Design Active Portfolio Design & & Planning Management Planning Hammerson Corporate Construction Asset Asset Construction Management Management Letting 6
CR MANAGEMENT Development Operations CR GROUP Corporate CR GROUP Corporate Development Operations 7
MATERIAL CR ISSUES Development Operations Corporate Climate change and energy Resource use Community regeneration Supply chain Customers 8
DEVELOPMENT ACTIVITIES � Major development programme and pipeline � All development on brownfield land � Typical £450 million annual project spend � Working with councils on major development projects in 12 cities Cabot Circus, Bristol 9
DEVELOPMENT – KEY CONSIDERATIONS Design and Planning Climate change and energy Aspirations of city councils Community consultation Design and connectivity Resource use Construction Community regeneration Contractor engagement Energy, water, waste efficiency Recycling of materials on-site Supply chain Letting Customers Meeting occupier requirements Improving occupier performance (financial and CR) 10
DEVELOPMENT - INITIATIVES INITIATIVE BENEFIT TO HAMMERSON RESULT (EXAMPLE) Recognition by City BREEAM Excellent Audit of all projects Councils of good environmental (Cabot Circus) under construction management leads to BREEAM Very Good access to future projects (Highcross Leicester) Waste, water & energy 54% on-site monitoring and reporting Lower construction costs recycling during by contractors Highcross construction Sustainability Objectives set to feed workshops held with Enhanced reputation with into sustainability councils and anchor Councils and with anchor implementation plans retailers for future retail retailers for developments developments £1 million government Provision of skilled local Pre-employment training funding accessed for jobs created in retail workforce provides incentive for 6,000 jobs in developments to retailers to lease stores Bristol and Leicester 11
OPERATIONS: IMPACTS � 55,000 tonnes of CO 2 emitted across UK portfolio 408,000 m 3 of water used across UK � portfolio � 14,800 tonnes of waste across UK portfolio � 1,300 retail occupiers � 130 office occupiers Bullring, Birmingham � 200 million visits to shopping centres each year 12
OPERATIONS – KEY CONSIDERATIONS Asset management Climate change and energy Customer relationships Improve environmental performance of buildings Resource use Measurement, monitoring and reporting Positive contribution to local communities Community regeneration Supply chain Customers 13
OPERATIONS - INITIATIVES Result (example) Initiative Benefit to Hammerson Shopping centre energy Lower carbon emissions from reductions 2007: Reduce energy use in managed portfolio in line with 12% ( UK) managed portfolio future legislation 11% (France) 27 tenants signed up Lower energy costs result in to green lease since Green leases lower service charges for October 2007 retailers Reduce costs by combating 50% of waste diverted yearly increases in landfill tax Increase recycling from landfill in 2007 set by legislation 14
CORPORATE – KEY CONSIDERATIONS Active portfolio management Climate change and energy Sustainability considerations included in acquisitions criteria Resource use Management Board responsibility for CR and corporate governance Community regeneration Benchmarking Staff training and development Supply chain Stakeholder communications Customers 15
CORPORATE - INITIATIVES Result (example) Initiative Benefit to Hammerson Goodwill supports shopping £700,000 invested in communities in locality centre footfall Community investment Support from local communities of UK offices, shopping programmes centres & retail parks facilitates planning process Consultations carried Thorough consultation results Best practice out in Sheffield, Leeds, in higher success rate in community consultation London planning applications Responsible Manage reputational procurement policy Supplier engagement risk in development Diversity training for all UK staff in 2007; Staff training and Staff retention and broader internal redeployment development skills base programme in France 16
LEGISLATIVE CONTEXT � Energy Buildings Performance Directive 2008 � Code for Non-Domestic Buildings 2008 � Code for Sustainable Homes 2007 � Carbon Reduction Commitments 2010 � Climate Change Bill 2008 � Climate Change Levy 2000 � Supplements to the London Plan 2008 � Landfill Regulations 2002, 2004, 2005 17
CR SUMMARY � Focus on material issues � Emphasis on environmental planning � Monitoring and measuring � Targets established � Leader in economic and social regeneration � “Developer of choice” for local authorities, occupiers, suppliers 18
HIGHCROSS LEICESTER
THE SHIRES � Existing scheme of 46,000 m², built 1991 � Anchored by Debenhams and House of Fraser � 60% interest acquired 2002 for £110 million from Hermes � Opportunity to grow retail turnover and rents 20
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