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News release


1 August 2008

Re Announcement to Stock Exchange that JP Morgan no longer set to take new "St Alphage House" site in EC2

Stuart Fraser, the City of London's Policy and Resources Chairman, said after the announcement this morning (Friday 1 August):

"It has become clear that the building J.P. Morgan was looking to build and occupy couldn't be accommodated on the St Alphage site. We don't know yet if they are hoping to move elsewhere within the Square Mile or elsewhere within London's financial cluster but we are confident that Hammerson can develop this prime site for another occupier.

"The strategic plan for the Square Mile business district - part of London's Central Activities Zone - makes it clear that large buildings of this kind for major financial services firms will remain an essential part of the landscape, properly balanced with the needs of smaller firms, residents, and others.

"Of course it is disappointing that this particular deal has not gone ahead but we are confident in the site's future as a location for the international financial services industry - which as a whole contributes significantly to the UK economy.

"This decision leaves unaltered the fact that Square Mile - with its 350,000 workers and 8,000 firms - remains a premier location for global business, with unrivalled transport links, a safe working and living environment, the Barbican arts centre, and all the other amenities that go with a world-class business cluster.

"Relations with JP Morgan and Hammerson are strong and we will continue to work with them both to promote and sustain all those who form part of the UK-based international services industry - whether in the Square Mile or beyond."

Ends

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