Eureka Leisure Park Sold to MWB for £20m

Capital & Regional Properties PLC
13 January 2000



                CAPITAL & REGIONAL SELLS EUREKA LEISURE PARK,                 
              ASHFORD, KENT TO MWB'S THIRD LEISURE FUND FOR £20M              

Capital and Regional Properties plc, the specialist retail and leisure
property company, today announces that it has completed an agreement to sell
its 26.5 acre Eureka Leisure Park, Ashford, Kent, to Marylebone Warwick
Balfour Group's Third Leisure Fund (MWB).  The park will be sold in two phases
for a total consideration of approximately £20 million, representing an
initial yield of 6.9%.  

The Eureka Leisure Park comprises 130,000 sq ft (12,077 sq m) and is located
adjacent to Junction 9 on the M20.  The development was acquired by Capital &
Regional in July 1998.

The sale completes in two phases.  Phase I for £10.2 million, which represents
49,575 sq ft and includes a 37,000 sq ft twelve screen cinema by Cine UK;
Pizza Hut (3,500 sq ft); City Centre Restaurants (Frankie & Bennys) 4,000 sq
ft; Kentucky Fried Chicken (2,575 sq ft) and Burger King (2,500 sq ft).  

The sale of Phase II for £9.8 million is expected to complete later this year,
following completion of construction.  Phase II represents 80,425 sq ft and
tenants include Granada Forte, for a 60-bedroom hotel and bar restaurant,
Academy Day Care and Nurseries Ltd (6,500 sq ft) and Halifax has leased an ATM
unit.  Gastronomie & Tanz, one of Germany's largest nightclub operators has
taken a 15,000 sq ft club and bar and Living Well Leisure, the health club
division of Stakis plc will occupy 35,000 sq. ft.

The park will include car parking for 910 vehicles and a cycleway is also
proposed to run through the site.

Andrew Lewis-Pratt, Executive Director of Capital & Regional commented: 'We
are delighted to announce the successful sale of this investment to MWB's
Third Leisure Fund.  The park has benefited from our management expertise to
attract high quality operators and this scheme is fully pre-let before
commencement of the second phase.  The existing operators continue to trade
well above expectations.'  



For further information please contact:

Andrew Lewis-Pratt, Capital & Regional                      020 7932 8000
Sarah Carrell, Corporate Communications                     020 7932 8000
Simon Leadbetter, MWB                                       020 7706 2121