Acquisition

Capital & Regional plc
11 August 2004


                                                                  11 August 2004



                          CAPITAL & REGIONAL PLC:
               THE MALL ACQUIRES THREE FURTHER CENTRES

Capital & Regional plc, the co-investing property asset manager and Morley Fund
Management today announces that The Mall fund, the leading owner and operator of
community shopping centres in the UK, has today exchanged conditional contracts
to acquire three shopping centres from clients of REIT Asset Management for a
total sum of £378.5 million.  This transaction reflects a net initial yield of
5.7% and an equivalent yield of 6.5% and it is anticipated that the deal will
complete in early September.

The Mall will own 21 shopping centres bringing total assets to £1.98 billion and
more than 7m sq ft of retail floorspace, making it the second largest shopping
centre owner in terms of number (behind Prudential) and size (behind Capital
Shopping Centres).  The new acquisitions mean that The Mall now welcomes
3,750,000 customers a week throughout the UK.

The three shopping centres are located in Blackburn, Maidstone and
Middlesbrough.

Chequers Shopping Centre in Maidstone comprises 46,450 sq m (500,000 sq ft) over
three floors.  The centre has over 80 stores including Bhs, TJ Hughes, Next,
Wilkinson, Boots, JJB Sports and Dixons and over 800 parking spaces.

The 37,160 sq m (400,000 sq ft) Cleveland Shopping Centre in Middlesbrough has
85 stores including Littlewoods, Boots, WH Smith and HMV and a 500 space car
park.

The Blackburn Shopping Centre comprises 49,701 sq m (535,000 sq ft) with over
110 shops including major national retailers such as Debenhams, Bhs, Boots,
Woolworths, WH Smith and Argos and 1,000 car parking spaces.


Ken Ford, Chief Executive of The Mall comments:

"We are delighted to acquire, off the market, a further three centres which
comply with our investment criteria - dominant covered centres in loyal
catchments and with significant operational and added value potential."

Strutt & Parker & CBRE advised The Mall.  Franc Warwick represented REIT Asset
Management.


Notes to Editors:


About The Mall

The Mall is the leading owner and operator of community shopping centres in the
UK.  The Mall, on completion, will have assets of over £1.98bn in 21 shopping
centres and has plans to grow assets to 25/30 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



About 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


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


                                    - ENDS -



For further information:

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


Morley Fund Management:
Philip Nell                               Tel:  [phone]



Redwood Consulting:
Liz D'Oliveira / Paul Haines                 T: 020 7224 4300



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




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