Acquisition

Capital & Regional PLC
07 January 2003


7 January 2003

                             CAPITAL & REGIONAL PLC


          Acquisition of Grosvenor Centre, Chester for £105.75 million

                      through The Mall Limited Partnership


Capital & Regional plc, the specialist co-investing property asset manager, and
Morley Fund Management are pleased to announce that The Mall Limited Partnership
("The Mall ") has purchased the long leasehold interest in the Grosvenor Centre
Chester for a total consideration of £105.75 million. The vendor was Equitable
Life Assurance Society advised by Insight Investments, the fund management arm
of HBOS.

Chester is the fifth most successful UK shopping destination (Esperian 02) and
the Grosvenor Centre is the city's dominant covered shopping centre.  The net
income for 2002 is approx £6 million and the purchase shows an equivalent yield
of 6.75%.

This is the first acquisition by The Mall Fund since its launch on 28 February
2002 and this acquisition brings the total number shopping centres in the Mall
Fund to 12.

The Grosvenor Centre extends to 167,000sq ft of retail space, primarily on a
single trading level, together with an integrated 550 space multi storey car
park.  The centre first opened in 1965 and was refurbished in 1996. The
Grosvenor Centre occupies a prime city centre location with over 130 retailers
represented and major occupiers include Debenhams (trading as Browns), Arcadia,
River Island, The Pier and Laura Ashley.

Martin Barber, Chief Executive, Capital & Regional said, "The Grosvenor Centre
is a good opportunity for us to develop the centre through our specialist
management expertise and we continue to look at a number of further centres to
expand the Fund."

Ken Ford, Chief Executive, The Mall said, "The Grosvenor Centre is a classic
Mall business. The centre is dominant in a loyal quality catchment, enjoys
strong retailer and shopper demand and represents many opportunities to
introduce Mall brand standards to both shopper facilities and marketing
promotions."


                                    - ends -


About "The Mall"

The Mall is the brand name of The Mall Fund, the investment vehicle established
by clients of Morley Fund Management and Capital & Regional plc to own and
operate community shopping centres throughout the UK.

The Mall has assets of approx £830M in 12 shopping centres throughout the UK,
and has plans to grow assets to £2bn in up to 30 locations, establishing The
Mall as the UK's Community Shopping Centre brand.  For further information,
visit themall.co.uk


For further information, please contact:

Capital & Regional PLC
Martin Barber, Chief Executive, Capital & Regional - Tel: [phone]
Ken Ford, Chief Executive, The Mall - Tel: [phone]

Hudson Sandler
Michael Sandler / Wendy Baker - Tel: [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange