Acquisition

Capital & Regional plc
18 June 2004


                                                                    18 June 2004


                             CAPITAL & REGIONAL PLC:

                 THE MALL BUYS THE GALLERIES, BRISTOL FOR £123M



Capital & Regional plc, the co-investing property asset manager, today announces
that The Mall has bought The Galleries Shopping Centre in Bristol for £123
million from Norwich Union for further units in the fund.  The Mall now owns 18
shopping centres bringing total assets to £1.54 billion in more than 5.5 m sq ft
of retail floorspace.



The Galleries in Bristol comprises 29,728 sq m (320,000 sq ft) with over 100
shops providing a mix of specialist and popular high street retailers including
Argos, Boots, Woolworths, Virgin Megastore, Gap and MK One.



Ken Ford, Chief Executive of The Mall comments "The Galleries is another
excellent purchase for The Mall and is an important shopping destination since
it is the only covered centre in the city centre of Bristol. Its situation in a
key position adjacent to the Broadmead regeneration scheme means it will
undoubtedly benefit from what is considered to be of the UK's most exciting
renaissance project."



Philip Nell, Fund Manager of The Mall Fund at Morley Fund Management comments 
"Norwich Union is an existing investor in the fund, and its further investment
through the sale of The Galleries is a fantastic endorsement of the fund's
future performance prospects.  The new equity that this acquisition brings will
enable the fund to continue towards delivering its goal of growing to at least
25 centres".



Strutt & Parker, Nabarro Nathanson and Berwin Leighton Paisner advised The Mall.



Notes to Editors:


About Capital & Regional plc

Capital & Regional is the co-investing asset manager which specialises in town
centre shopping centres, out of town retail parks, and urban entertainment
complexes.  It founded the Mall and Junction Limited Partnerships in conjunction
with Morley Fund Management.  Its shares are quoted on the London Stock
Exchange, and in addition to its management contract with and co-investment in
the Mall and Junction funds, it now runs the X-Leisure Fund and has a number of
other joint ventures and developments.


For further information:  www.capreg.com



About The Mall



The Mall is the leading owner and operator of community shopping centres in the
UK.  The Mall has assets of over £1.54bn in 18 shopping centres and has plans to
grow assets to 25 centres, establishing The Mall as the UK's Community Shopping
Centre brand.  Capital & Regional and Morley Fund Management set up The Mall
Fund in 2002.


For further information, visit themall.co.uk



Morley Fund Management



Morley Fund Management ('Morley') is an independently managed, London based,
asset management business with over £111 billion* under management (as at
31.03.04). It is a wholly owned subsidiary of the Aviva Group and acts as
investment manager to Norwich Union in the UK.



The property team at Morley manages in excess of £12 billion* of UK Property
assets (as at 31.03.04), making Morley one of the largest property fund managers
in the UK. The team consists of 50 investment professionals and manages a range
of funds, including segregated and pooled pensions as well as 2 retail unit
trusts.



* Not including mortgage assets



                                    - ENDS -

For further information:

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

Hudson Sandler
Michael Sandler / James Benjamin                      Tel:  [phone]


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