Capital Markets Day 2015 13th November 2015

Today’s agenda

Introduction David Atkins – CEO

01 Retail Parks Andrew Berger-North – Director, UK Retail Parks

02 Elliott’s Field Tom Cochrane – Development Manager

03 Our portfolio position today David Atkins – CEO Peter Cooper – Director of Asset Management UK Retail Sarah Fox – Head of Restaurants and Leisure Sophie Ross – Group Head of Multichannel Simon Betty – Director of Retail, Ireland

04 Leeds Victoria James Hepburn – Development Manager Nick Fay – Senior Project Manager Lucy Philips – Leasing Executive, Leeds

2

We create desirability

20 prime shopping centres UK & France

Around 250 million visitors each year

£2bn annual sales

£240m passing rents

3

15 Premium Outlets

12 countries

Value Retail and VIA Outlets

£1.1bn GAV

Bullring, Birmingham Fife Central Retail Park, Kirkcaldy Batavia Stad, Amsterdam

Hammerson is creating destinations where more happens for communities, for consumers and for brands

(1) Includes Villebon 2, France

Experience Convenience Luxury

21 retail parks(1)

2nd largest owner of retail parks in UK

Over 500,000m2

£80m passing rents

Retail parks Andrew Berger-North Director, UK retail parks

4

01

483,000m2

Retail parks: a major strength within our portfolio

5

Why are we invested in retail parks?

1. Exceptional occupational demand – both ‘traditional’ and fashion

2. Have the experience required to deliver skilful management of the tenant mix and to drive rental growth

3. Efficient to run

4. Extensions and developments are quick to deliver and highly profitable

5. Total returns are equivalent to UK shopping centres

Selective about the market sub-segments we invest in…

Hammerson portfolio

Total retail parks area

No of parks over 20,000m2

15 of 20 Occupancy (at 30 Sept 2015)

98.5% Unexpired lease term to expiry or break

8.7 years Open A1 consented space

58%

Retail parks are not all the same…the market has a number of sub-segments

6 Source: Hammerson; Cushman and Wakefield, October 2015 (1) Market and portfolio split by number of parks (see Appendix for split by value)

Shopping parks Hybrid parks Key homeware goods parks

Standard homeware parks

Solus units

£30-50/sq ft £20-30/sq ft £15-30/sq ft £12-15/sq ft £8-15/sq ft

4.5% 4.5–5.0% 5.25–6.0% 6.5–7.0% 7.0–9.0+%

Hammerson investment focus

Indicative rents

NEY

UK Retail Parks market(1)

5%

23%

12%

16%

43%

13%

30%

39%

8%

13%

Shopping park

Hybrid park

Key homeware goods

Standard homeware

Solus

79% by number of properties

40% by number of properties

Hammerson portfolio(1)

Vacancy is falling but remains high for secondary homeware goods parks; is at an all-time low for Hammerson

7 Source: PMA (PROMIS)

Vacancy across retail parks (%)

0%

5%

10%

15%

20%

25%

30%

2008Q1

2008Q3

2009Q1

2009Q3

2010Q1

2010Q3

2011Q1

2011Q3

2012Q1

2012Q3

2013Q1

2013Q3

2014Q1

2014Q3

2015Q1

All Retail Parks Shopping parks Secondary Bulky Goods Parks Hammerson

Exceptional occupational demand: ‘traditional’ homeware goods

Recovery in housing market driving sales

Surge in demand for homeware goods units – especially from home furnishings retailers

Currently one of the best performing retail segments

ScS, Sofa Works, Oak Furniture Land, Homesense, Dunelm and new entrant Tapi – all acquiring new physical space

B&Q and Homebase reducing estates – opportunity to substitute new tenants

Strong ERV growth wide-reaching across the portfolio

8

“The out-of-town non-food sector has the most positive occupier market for the best part of a decade.” Cushman & Wakefield, UK Retail Warehouse report Q3 2015

Household goods sector driven by strong furniture sales

9 Souce: ONS (September 2015)

Household goods sales growth % p.a.

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

2008SEP

2009JAN

2009MAY

2009SEP

2010JAN

2010MAY

2010SEP

2011JAN

2011MAY

2011SEP

2012JAN

2012MAY

2012SEP

2013JAN

2013MAY

2013SEP

2014JAN

2014MAY

2014SEP

2015JAN

2015MAY

2015SEP

DIY Electricals Furniture

Low vacancy together with strong occupational demand is triggering impressive letting deals

10

Hobbycraft, Imperial Bristol ERV: £19psf, NER: £23.12psf (+22%)

ScS, Westwood Retail Park Thanet ERV: £20.50psf, NER: £26.13psf (+27%)

Oak Furnitureland, Abbotsinch Paisley ERV: £22.50, NER £26.37psf (+17%)

Note: NER = net effective rent

Tapi, Westwood Retail Park Thanet ERV: £21.50psf, NER: £28.50psf (+32%)

Selection of homeware goods lettings across Hammerson’s portfolio (YTD)

Tenant administrations and right-sizing of DIY retailers presents an opportunity

11

1

2 3

Phase 1 Extension: completed

Phase 2 Reposition: Tenant administrations facilitated upsize of Next and introduction of M&S Food

Phase 3 New facias: Took back Homebase and introduced new stores

Passing rent +150% (to £1.2m p.a.)

Profit on cost >25%

Fife Central Retail Park, Kirkcaldy

Actively managing retailer substitution

12 (1) Design image of future scheme

Fife Central Retail Park, Kirkcaldy

Phase 2 Reposition park tenant mix

Phase 3 Replace Homebase

Before

After

Before

After (1)

Strong occupational demand: shopping parks

Strong tenant demand for best shopping parks

Next, Primark, M&S Simply Food, Outfit, Wilko and H&M active in

10-15,000 sq ft segment

Next: 75% of new space on retail parks

New River Island kidsware range – expansion focused on shopping

parks

Key size requirement of 2-5,000 sq ft for new entrants including Fat

Face, Schuh, Mountain Warehouse and Moss Bros

Packages stable

13

“Retail parks have outperformed the wider retail market with respect to footfall and vacancy rates. The sector saw a 4% increase in footfall in September, the best performance since January 2014 and bucking an overall drop of 0.2%.” Cushman & Wakefield, UK Retail Warehouse report Q3 2015

Material tenant overlap with shopping centres creates synergies

14

Hammerson coordinated approach Tenant overlap with shopping centres

“Retailer of the Month” meeting

Customer-centric approach: one voice to our customers

Retailers’ leasing teams are regional, not by property type

Coherent approach to leasing terms with retailers

Multiple touch points open more opportunities

More attractive landlord proposition

Extensions and developments are quick to deliver and highly profitable

15

Abbotsinch Retail Park, Paisley Cyfarthfa Retail Park, Merthyr Tydfil

• £9m

• 5,000m2

• Yield on cost 13%

• Profit on cost 91%

• £27m

• 14,500m2

• Yield on cost 7%

• Profit on cost 34% Annualised return on incremental capital 2012 – 2014 of 20%

16

17.4 15.4

1.2

-20.7

-3.1

19.3

7.0

4.3

7.8

15.0

24.1

12.0

-1.8

-26.6

8.1

18.1

7.9

3.0

7.8

15.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14

UK Shopping Centres UK Retail Parks

Total returns at Hammerson retail parks vs. Hammerson UK shopping centres within portfolio (%)

Total returns at retail parks are equivalent to shopping centres

Retail parks portfolio is efficient to run

17

Retail parks team: 8 people

(1) As at 30 June 2015. Property outgoings include net service charge expense and property outgoings, exclude corporate and central overhead costs

4.6%

12.2%

0%

4%

8%

12%

16%

UK RetailParks

UK ShoppingCentres

Property outgoings : rent(1)

Elliott’s Field, Rugby

Tom Cochrane Development Manager

18

02

Elliott’s Field one year ago…

19

Elliott’s Field Shopping Park: the vision

20

Elliott’s Field: scheme overview

21 (1) Profit on total development cost including land acquisition

Size

15,700m2

Key facts

Total project cost

£76m

Gross rental income at completion

£4.5m

Profit on cost(1) / Profit

23% / £17.5m

IRR

20%

Start on site

Sep 2014

Official opening

28 Nov 2015

BREEAM rating

Excellent

Rugby offers an ideal ‘in-fill’ location for retailers

Total catchment: 443,000 Primary catchment: 124,000 Affluent families: 22,000 Conveniently located 1 mile north of the town centre under 2 miles south of junction 1 of the M6 motorway

22 Source: Javelin

Rugby is an affluent growing town with a weak town centre retail offering

Working with retailers to deliver best in class service

23

Before After

Fashion shopping on your doorstep

24

Portfolio firsts

Enhanced customer experience

Shopping parks: the next generation parks

25

Interface with the digital age

Forward looking initiatives

Family friendly facilities including

• Customer WCs and baby change

• Parent and child car parking

• Play area Centre management suite

Uniformed customer services representatives

Free mobile phone charging points

Free Wi-Fi

Click and collect lockers

Consumer website, Twitter feed and Facebook profile promoting retailer offers

Retailers have designated click and collect points

Electric car charging points

Car and customer flow tracking

Consistent Hammerson branding across scheme

Part landlord, part retailer funded marketing budget

Great returns, and more to come

26 (1) Profit margin on total development cost including land acquisition

Valuation components for Elliott’s Field (£m)

0

20

40

60

80

100

120

Acquisition2011

Developmentcost

Profit Valuation atcompletion

23% profit on cost

Further profit to come from expected rental uplift

2020

(1)

10,470m2

£47m

£3m

6.5%

£7m

24%

18%

27

Size

Total project cost

Expected GRI at completion

Expected yield on cost

Expected profit

Key Facts

Start on site

Practical completion

Dec 2015

Feb 2017

Expected POC

Hammerson’s next fashion park: Orchard Centre, Didcot (phase two)

IRR

Our portfolio position today

David Atkins CEO

28

03

We create desirability

20 prime shopping centres UK & France

Around 250 million visitors each year

£2bn annual sales

£240m passing rents

29

15 Premium Outlets

12 countries

Value Retail and VIA Outlets

£1.1bn GAV

Bullring, Birmingham Fife Central Retail Park, Kirkcaldy Batavia Stad, Amsterdam

Hammerson is creating destinations where more happens for communities, for consumers and for brands

(1) Includes Villebon 2, France

Experience Convenience Luxury

21 retail parks(1)

2nd largest owner of retail parks in UK

Over 500,000m2

£80m passing rents

Guided by clear strategic priorities

30

High quality property

Income generation

Capital strength

Our strategy to drive consistent earnings growth

1. Strong and improving consumer backdrop

2. Applying our unique insight and skill to match latest retail trends

3. Investing incremental resources into fast-growing end markets

4. Focus on cost management and capital structure

5. Delivering a pipeline of prime developments to secure future growth

31

Track-record of sector-beating earnings and dividend growth

32 Source: Company; Bloomberg (1) Bloomberg data as at 11 November 2015 (2) Bloomberg data. Average of Unibail, Klepierre, Intu, British Land and Land Securities

Hammerson EPS (pence) Hammerson DPS (pence)

Consensus forecast

2014-17F(1)

8%

13.6

5

10

15

20

25

2011 2012 2013 2014 2015

H1 H2

9.5

5

10

15

20

25

2011 2012 2013 2014 2015H1 H2

CAGR 7.4% CAGR 7.1%

Consensus forecast

2014-17F(1)

7%

Peer group average consensus forecast

2014-17F(2)

4%

Peer group average consensus forecast

2014-17F(2)

3%

A larger and enhanced European retail portfolio

33 (1) Pro-forma as at 30 June 2015, including acquisitions of Project Jewel and disposals of Bercy 2 and Grand Maine

Hammerson portfolio breakdown by value(1)

UK Shopping Centres

34%

France 19%

UK Retail Parks 19%

Premium Outlets

13%

Ireland Retail (loans) 10%

Total Portfolio Value

£8.6bn £7.1bn

UK shopping centres

£2.9bn £2.6bn

France £1.6bn £1.8bn

UK Retail Parks £1.6bn £1.6bn

Premium Outlets £1.1bn £0.8bn

Ireland retail (loans)

£0.9bn n/a

Other/ developments

£0.5bn £0.3bn

30 Jun 2014 30 Jun 2015 Other/developments 6%

Investing in fast-growing markets

34 (2) Pro-forma as at 30 June 2015, including acquisitions of Project Jewel and disposals of Bercy 2 and Grand Maine

UK Shopping Centres

34%

France 19%

UK Retail Parks 19%

Premium Outlets

13%

Ireland Retail (loans) 10%

Other/developments 6% Ireland retail

Retail sales growth 6 – 8% p.a.

Acquired established leading platform

Synergies with UK portfolio

Longer-term attractive developments

Expected 5-year ungeared IRR: 7 – 8%

Premium Outlets Retail sales growth +10% p.a.

Extending Value Retail villages

VIA Outlet acquisitions

Expected IRRs on VIA Outlets acquisitions: 10 - 12%

Only REIT with meaningful strategic exposure to both:

End market sales: good in UK; flat in France; strong in Ireland

35 (1) Source: ONS. Predominantly non-food store sales (2) Source: Banque de France. Predominantly non-food store sales (3) Source: Central Statistics Office. Predominantly non-food retail sales index

UK retail sales(1) France retail sales(2) Ireland retail sales(3)

-14

-12

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

Sep

-05

Sep

-06

Sep

-07

Sep

-08

Sep

-09

Sep

-10

Sep

-11

Sep

-12

Sep

-13

Sep

-14

Sep

-15

Volume Value

-14

-12

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

Sep

-05

Sep

-06

Sep

-07

Sep

-08

Sep

-09

Sep

-10

Sep

-11

Sep

-12

Sep

-13

Sep

-14

Sep

-15

Volume ValueYoY % YoY %

-14

-12

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

Sep

-05

Sep

-06

Sep

-07

Sep

-08

Sep

-09

Sep

-10

Sep

-11

Sep

-12

Sep

-13

Sep

-14

Sep

-15

Volume ValueYoY %

Improving trend in Hammerson’s tenant sales

36

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

H1

12

FY 1

2

H1

13

FY 1

3

H1

14

FY 1

4

H1

15

YTD

UK: benefitting from continued focus on best tenant mix and customer experience

UK tenant sales

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

H1

12

FY 1

2

H1

13

FY 1

3

H1

14

FY 1

4

H1

15

YTD

France: Les Terrasses du Port and retenanting delivering results

France tenant sales

Note: Growth in retailer revenues on a same-centre basis, including Primark revenues at O’Parinor based on Hammerson’s estimates. Full year data reflects previous 12 months.

+2.2%

+0.8%

Strong fundamentals for rental tension in UK portfolio

37

Falling vacancy

UK portfolio vacancy (%)

Fewer temporary lettings

Temporary leases in UK retail portfolio

3.4%

2.8% 2.9%

1.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

UK SCs UK RPs

Sep-14 Sep-15

86

61

53

0

10

20

30

40

50

60

70

80

90

100

Dec-14 Jun-15 Sep-15

All temporary leases < 1 year

Latest retail trends driving occupier demand

38

1 Brand

flagships

2 Trending brands

3 New

concepts

4 Personal

treats

5 Restaurant

heroes

39 (1) Year to date to 30 September 2015 (2) Chart shows principal lettings where comparable LfL ERV for 31 December 2014 is available

Individual leases signed by Hammerson 2015 YTD – % above/(below) ERV(2)

80% of lettings at or above ERV at UK Shopping Centres; total rents signed at 5% above ERV(1)

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Letti

ng a

bove

/ (

bel

ow

) ER

V

Flagship clothing Non fashion Catering

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

6 m

ont

h ER

V g

row

th

6mth ERV - H1 2014 6mth ERV - H1 2015

Hammerson shopping centre rental growth – moving on ERVs centre by centre

40 (1) Monument Mall excluded as equivalent ERV as at 30 June 2014 not available due to development (2) Source: PMA Autumn 2015 forecasts for large shopping centres; CBRE National Forecasts for large shopping centres (as at August 2015)

Oracle

Hammerson 6 month ERV growth per UK shopping centre (%) (1)

Market forecast ERV

growth (2)

FY 2015

PMA 1.2% p.a. CBRE 1.5% p.a.

2016 – 2020

PMA 2.8% p.a. CBRE 1.6% p.a.

Driving ERV growth at the Oracle – “We Create Desirability”

41

International flagship deal

Victoria’s Secret

Upsizing existing tenants

Topman, Topshop, Miss Selfridge, H&M

Exciting new retailers

Smiggle, Kiko

Improved catering offer

Five Guys; Côte; CAU; TGI Friday’s

Value-add projects

Creation of bespoke catering unit for CAU

Product Framework initiatives

Lighting; phone charging; interactive hoardings

Riverside Pavilion and public realm upgrade

Start on site H1 2016

Before

Bespoke catering unit for CAU

After

6m ERV

+2.5%

Retail sales YTD

+3.1%

Footfall YTD

+2.6%

Growth in non-rental revenue

Income from digital screens +31% since 2013

Mall catering income grown by +110% since 2012

Operators recognise need for more engaging kiosk design to boost sales, driving rents by up to +30%

New Hammerson ‘Head of Commercialisation’

42 (1) Gross revenue received from commercialisation initiatives across UK shopping centres. Net income received by Hammerson from commercialisation includes c.30% cost margin

(2) Net car park income £16m 12 months to 30 June 2015

4

6

8

10

12

14

16

2009 2010 2011 2012 2013 2014

Advertising & promotions Kiosks

Car valeting Vending

Storage Other

UK shopping centre commercialisation revenue (£m) (1)

13% CAGR

Car park income +8.8%(2)

Current catering trends

1 in 4 visitors come to shopping centres specifically to eat(1)

Food & beverage space in Hammerson portfolio: 8.7% (2010: 6.7%)(2)

43

Staple cuisines such as burgers, pizza, and pasta are diversifying Italian remains a firm favourite; new market entrants include Franco Manca, Pizza Pilgrims Trend is towards informal dining; sharing food/grazing e.g. Polpo Mexican, BBQ & noodle chains continue to grow in popularity Traditional food court offering more relevant Restaurants embracing all day offering

Catering insights

(1) Source: CBRE (2) Total space including leisure: 14%

Catering sales continue to be strong

44 (1) Sales growth figures for Sep 2014 – Sep 2015 for catering units where provided (2) Includes restaurants that have exchanged but are not yet trading

Top performing restaurant brands in Hammerson’s portfolio by sales growth (YoY %)

+26% 2

+15% 1

+15% 5

+12% 1

+12% 5

+11% 8

+11% 2

+10% 5

Restaurants in Hammerson portfolio (2)

Hammerson YoY sales growth % (1)

What can an improved catering offer bring to a centre?

45

Silverburn – Winter Garden extension Phased opening from Jan 2015

Highcross – St Peter’s Square dining quarter Completed August 2014

Dwell time increased 16 minutes, +21% Centre LFL sales +5.0% Restaurant LFL sales +6.2%

Post 5pm footfall +20% Centre LFL sales +4.6% Restaurant LFL sales +2.6%

Digital engagement: driving positive behaviour from our shoppers across all our shopping centres

46

Know who our loyal shoppers

are: gender, age, interests

Understand shoppers’

preferences

Communicate with shoppers in

real time based on their

expressed and learned interests

Consumer engagement

6 preferences identified

2 push messages received

1 offer redeemed

40,000 beacon

detections

270 instances of

precise location data collected

Insight from one shopper visit

Engaged customers visit more

retailers and spend longer in

our centres

Stores visited

Not registered 3 Registered users 6 Redeemers 12 While more women are using

the app, men are more likely to

redeem offers than women

Increasing customer spend

Product Framework 2015 initiatives delivered

47

Iconic destinations Placemaking art

Best at retail Design guidelines

Retail Trust/College of Fashion sponsorship

Convenient & easy

Mobile phone charging units

Click & collect

Premium toilets

Best in class car parks

Customer service desk

Internal and external seating

Best practice wayfinding

Interactive & engaging

Digital infrastructure

Interactive hoardings

Virtual gift cards

Wedding/gift list

Sound/light/smell improvements

Entertaining & exciting

Pianos in the mall

Disco bull's head

In-centre family entertainment

Mobile phone charging

Placemaking art

Disco bull’s head, Bullring

Premium toilets

Click & collect

Customer service desks

Our Jewel portfolio assets

48

Dundrum

Dundrum

Pavillions, Swords

Ilac Centre

Dundrum

5.5

3.7

2.7

1.8

0

2

4

6

2013 2014 2015F 2016F

Ireland is the fastest growing European economy

49 Source: Ireland Central Statistics Office, Department of Finance

Highest GDP growth in Europe

Strong declining trend in unemployment

0.9 1.5

1.9

0

1

2

3

4

5

2014 2015F 2016F

Ireland Euro AreaGDP %

13.1 11.4

10.2 9.4

0

7

14

2013 2014 2015F 2016F

Unemployment rate %

Broad based recovery

Deficit as % of GDP

3.6 3.6

1.9

0

1

2

3

4

5

2014 2015F 2016F

Domestic demand contribution to GDP growth %

77% 92%

56%

Four straight years of fiscal outperformance

4.7

3.9 3.4

Strong support for the Dublin retail rental market

50

All retail sales index (1)

90

95

100

105

110

115

120

Jan-05 Jul-06 Jan-08 Jul-09 Jan-11 Jul-12 Jan-14 Jul-15

Dublin prime retail rental growth (%)

-10 -11

25

14 11

6

-15

-10

-5

0

5

10

15

20

25

30

2012 2013 2014 2015E 2016E 2017E

International investment

Arnott’s purchased by Westons (Selfridges group)

54% property investment from overseas (YTD)

Infrastructure improvement

DART connection

Metro North to Swords

Source: CBRE; Ireland Central Statistics Office (1) All retail business sales volume index, excluding motor sales

Hammerson on the ground in Dublin

Simon Betty appointed Director of Retail, Ireland

Other recruitment underway

51

Appointments

Loan management

Asset management

All outstanding loan balances verified

Dundrum rent accounts swept monthly

First interest cash flows received by JV in-line with investment underwriting

Constructive engagement with borrowers

Interim asset management approval process implemented

Recent leasing deals coming in ahead of acquisition assumptions

Value Retail, Kildare: new extension opened in Dublin

52

Strong sales momentum

Sustained interest from overseas visitors

€50m Phase 2 extension adding over 50% incremental space, 400 new parking

spaces and a further 400 jobs

New Visitor Centre offering enhanced hospitality services

33 new boutiques and two new restaurants

Extension opened in October

Sales growth hit a record high of 18% year to date

Kildare Village attracts 2.5+ million visitors a year

Significant increase in travellers from China, the Middle East and USA

Our strategy to drive consistent earnings growth

1. Strong and improving consumer backdrop

2. Applying our unique insight and skill to match latest retail trends

3. Investing incremental resources into fast-growing end markets

4. Focus on cost management and capital structure

5. Delivering a pipeline of prime developments to secure future growth

53

In summary, a proven strategy delivering consistent shareholder returns

54

Improving end markets

Operational excellence

Strong development pipeline

Effective cost management

Delivering EPS and DPS growth

EPS (pence) DPS (pence)

13.6

5

10

15

20

25

2011 2012 2013 2014 2015

H1 H2

9.5

0

5

10

15

20

25

2011 2012 2013 2014 2015

H1 H2

CAGR 7.4% CAGR 7.1%

Leeds Victoria 04

56

Leeds: a major northern city with an affluent catchment and excellent transport links

Population

800,0000 Rank in UK by population size

3rd

Leeds city centre’s retail core

57

Today’s venue

A strong local economy

58

Leeds city business sector strengths Economic hub

Manufacturing Financial and professional services

Health

Banking

Legal

Insurance

Financial technology

Health informatics

Regenerative

medicine

Technology

enabled care

Diagnostics

Pharmaceuticals

Medical devices

Energy

Chemicals

Health

Precision engineering

Agri-tech, food and

drink

£60.5 billion economic output

109,000 companies

Recent inward investment into Leeds’ cultural space, infrastructure and manufacturing

59

Leeds Arena

£60 million

A major new entertainment venue

Investment

HS2 infrastructure

Station South entrance development

Investment

£17 million

Burberry textile factory

1,000 jobs created

£50 million Investment

Leeds poised to overtake Manchester as 2nd retail city in UK

Souce: Accenture (Javelin) and Deloitte

Rank Venue VENUESCORE

London West End 1,614

London, City 809

1 Glasgow 785

2 Manchester 756

3 Leeds 622

4 Birmingham 621

5 Liverpool 569

Consolidation of positions with Leeds predicted to move

into 2nd in 2017

New UK openings

Leeds 2013

Trinity

Birmingham 2015

Grand Central

Leeds 2016

Victoria

60

Hammerson is investing in the city in partnership with Leeds City Council and John Lewis

Key facts

11 acres of City Centre regeneration

10 years in the making

Partnership with Leeds City Council

61

Victoria Quarter The Vision: The premium retail destination in the north of England

Victoria Gate The Vision: The premium retail destination in the north of England

To secure the ‘Victoria’ brand as the

destination for premium and aspirational shopping in the north of England

The Victoria vision

Brand positioning

64

The Victoria opportunity

65

Catchment Leeds

Source: FSP

50% Leeds’ population in Social Grade A B C

Shopper spend per head on

womenswear is 7% higher than both Manchester and Birmingham

41% Shoppers aged 16-24

£9.5bn Total catchment non-grocery spend

£729m Food and non-food spend available

81% Shopper demand for premium goods that is not being satisfied

Positioning Victoria amongst the leading premium retail destinations

Common themes

• One landlord

• Evolution of retail and architecture

• Premium experience

66

Regent Street, London Bicester Village, Oxfordshire Kings Road, London

67

Historical architecture creates a unique retail setting

Victoria Quarter

Size

19,200m2

Anchor

Harvey Nichols

Key facts

Annual footfall

6 million Built

1898-1900 Acquired

2012

68

Victoria Quarter

ERV

£8.3m

Number of stores

82

Key facts Victoria Quarter leasing plan

69

Integrating Victoria Gate with the existing Victoria Quarter scheme

70

Creating the Victoria Gate development

5,300 sqm retail

4,100 sqm restaurants

4,200 sqm casino

Hammerson branded scheme

Victoria Gate Arcades

24,200 sqm store

Largest store outside London

Restaurant

Roof garden

Bespoke design

John Lewis

850 spaces

Major Transport Hub

Multi Storey Car Park

71

Exterior arcade design pays homage to Leeds’ architectural history

North facing Eastgate façade

72

Differentiating internal arcades with iconic flooring

Internal arcade design and flooring

73

Creating John Lewis’s northern flagship store

74

Multi Storey Car Park

75

Victoria Gate financials

Financial metric Current forecast

Total project cost £165m

Expected rental income £11m

Profit on cost £m £19m

Profit on cost % 11%

Yield on cost 6.5%

IRR 12%

Size

34,200m2

Number of units

35

Car park spaces

850

76

On track with construction programme

Tender Oct 2013

Started on site April 2014

Demolition Complete

Steel works Complete

Topping out Nov 2015

John Lewis access Feb 2016

Tenant access April 2016

Centre opening Oct 2016

Image: February 2015

Key milestones

77

Modern design management: BIM 3D modelling

78

Progress on site: precast facades

Image: October 2015 79

On track to achieve BREEAM ‘Excellent’

15% improvement on Building Regulations – target 25%

Solar panels under consideration

Tenant collaboration

80

Energy

40% more efficient than a typical shopping centre

Ground water used to suppress dust

Water

98% of construction and demolition waste diverted from landfill

Concrete, brick and slate crushed and reused as fill

Waste

Tenant mix strategy influenced by Victoria Quarter

Victoria leasing plan

81

Introducing new international and premium brands to Leeds

82 (1) Legal documents signed ready for exchange

Brands signed include

John Lewis

Casino (GGV)

The White Company

Maje

Cos

& Other Stories

D&D (rooftop restaurant)

Anthropologie

Hackett(1)

Victoria Gate will bring

8 new brands to Leeds

6 new brands to Hammerson’s portfolio

(1) Commercialisation accounts for remaining 6%

Brands % of rental income

Exchanged or under offer 66%

Advanced negotiation 78%

In discussion 94%(1)

83

Encouraging leasing progress to date

A selection of target retailers

84

Critical mass

Commitment from premium brands

Unique destination outside London

Target restaurant operators

85

Integration of Victoria Estate

Re-branding: Victoria

Public realm

Interior design

Customer service

Digital

Way finding

86

Victoria Gate: phase two

Creating a family-friendly destination

9 acres of regeneration

Consent for 1 million sq ft

Revised master plan Summer 2016

Phase 2 site boundary

2012 master plan

87

Victoria: a home for superbrands

Size

51,400sq m

Expected ERV

£19m

Key facts

88

Tenants

117 units Car parking spaces

1,500

Expected footfall

12 million

Victoria Gate timelapse

89

Questions

90

Appendix

91

Our retail parks portfolio is focused on selective market sub-segments

92

UK Retail Parks market Hammerson portfolio

Source: Based on PMA market classification (see Appendix) 2015

5%

23%

12%

16%

43%

17%

40% 8%

16%

19%

13%

30%

39%

8%

13%

21%

44%

29%

3% 3%

Shopping park

Hybrid park

Key homeware goods

Standard homeware

Solus

79% by number of properties

40% by number of properties

65% by value

94% by value

Hammerson focus

The retail parks market is segmented

Sub-market PMA Category Definition Typical tenants No of parks in UK

Share of UK market by value

Shopping Park

Shopping Park Retail parks of > 75 sq. ft featuring six or more key ‘high street’ retailers that account for more than 50% of all floor space; ‘key’ refers to that subset of ‘High Street’ retailers (mainly, but not exclusively, fashion retailers’ that are most able/likely to pay higher rents

Outfit Next New Look River Island

56 17%

Hybrid Parks

Key Hybrid Park

Retail parks of > 75 k sq ft which typically feature between three and five key 'High Street' retailers; this sub-market also includes retail parks with six or more such retailers where these account for less than 50% of total floorspace

Next Pets at home Matalan Argos Sports Direct

117 26%

Other Hybrid Park

All other hybrid parks, ie those retail parks with at least three ‘High Street’ operators, up to two of which may be ‘key’ retailers

As above 129 14%

Key Homeware Goods Parks

Key Large Bulky Goods Park

Retail parks of >120k sq ft occupied principally by bulky goods retailers but including 1-2 key retailer(s)

Argos Debenhams DFS Harveys Sofaworks

30 4%

93

The retail parks market is segmented

Sub-market Definition Typical tenants No of parks in UK

Share of UK market by value

Large Bulky Goods Park

Retail parks of >120k sq ft occupied predominantly by bulky goods retailers with no key retailers

B&Q Homebase DFS

35 4%

Standard homeware

Key Bulky Goods Park

Retail parks of <120k sq ft occupied principally by bulky goods retailers but including 1-2 key retailers

B&Q Homebase Argos Matalan

91 8%

Other Bulky Goods Park

Retail parks of <120k sq ft occupied predominantly by bulky goods retailers with no key retailers

Homebase Wickes B&Q

142 8%

Solus parks Non-park space (or solus units/clusters)

All other retail warehousing properties, consisting primarily of solus units, but also unplanned clusters or retail parks which do not meet our definition in terms of units (minimum of 3) and floorspace (at least 40,000 sq ft); these properties are broken down in to four sub-markets according to ERV quartile

Homebase Wickes Go Outdoors The Range

452 19%

94

Outlet market: international tourism continues to support strong retail sales growth

95

International tourism continues to support strong sales growth for Value Retail

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

F

Outlet/Tax free sales vs LY

Top three international markets

Alcochete, Lisbon

+22% 1. Brazil 38% 2. Angola 30% 3. China 15%

Batavia, Amsterdam

+43% 1. China 22% 2. Egypt 8% 3. Israel 8%

Fashion Arena, Prague

+17% 1. Russia 41% 2. Israel 12% 3. China 10%

Diverse source of tourist spending across VIA Outlets