Acquisition

Capital & Regional plc
23 November 2006

                                                                23 November 2006


                             CAPITAL & REGIONAL PLC

               ANNOUNCES €50M GERMAN BIG-BOX RETAIL ACQUISITIONS


Capital & Regional plc, the co-investing property asset manager, today announces
further acquisitions in its joint venture with the German property group Hahn, a
specialist in this sector.

A portfolio of four 'big box' out of town retail stores has been acquired for
€50m, consisting of 35,460 sq m producing €3.46m per annum with a net initial
yield of approximately 6.6% after non-recoverable costs. Tenants include Real
(Metro), Edeka and Globus DIY in Leverkusen, Tier, Hoesbach and Sobernheim.

These properties are managed by Hahn Group which has a 10% share in the venture.

The C&R portfolio now comprises 30 principal properties with a total floor area
of 360,000 sq m.

Xavier Pullen, Deputy Chief Executive of Capital & Regional plc, says "We set up
the joint venture with Hahn Group in July 2005, having researched the out of
town big box retail market in some detail. This acquisition includes an existing
Hahn closed end fund and 3 open market acquisitions. We have been operating in
Germany for some time and have a pipeline of further acquisitions to add to this
joint venture".

Bernhard Schoofs, Chief Executive of the Hahn Group says "We are pleased to
announce an expansion of our joint venture with Capital & Regional, having
recently successfully completed our IPO, raising new equity. We continue to look
for opportunities to invest together in our joint venture".


                                    - ends -


For further information:

Capital & Regional

Xavier Pullen, Deputy Chief Executive                Tel: [phone]
William Sunnucks, Group Finance Director             Tel: [phone]

Maitland

Martin Leeburn                                       Tel: [phone]
Emma Burdett                                         Tel: [phone]


Appendix:

The individual properties purchased are as follows:

Sobernheim - total lettable area 7,387 sq m on a total plot size of 27,600 sq m
let to Wal Mart, now part of real - Metro Group.

Leverkusen - total lettable area 5,000 sqm on a total plot size of 12,061 sq m
let to Edeka.

Hoesbach - total lettable area of 12,000 sq m let to Globus DIY on a total plot
size of 37,272 sq m.

Trier-Kenn - total lettable area of 11,634 sq m on a total plot size of 40,471
let to Wal Mart, now part of Real - Metro Group.


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.

Capital & Regional founded the Mall and Junction Funds in conjunction with
Morley Fund Management. It also founded the X-Leisure fund with Hermes
Investment Management Limited, and has a number of other joint ventures and
developments. Its shares are quoted on the London Stock Exchange.

For further information see www.capreg.com





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