Issue of Equity

Capital & Regional plc
05 January 2005



Not for release, publication or distribution in, or into the United States, 
Canada, Australia or Japan

                                                                  5 January 2005



                                CAPITAL & REGIONAL PLC:

                             ISSUE OF NEW ORDINARY SHARES                               




Capital & Regional plc ("Capital & Regional" or the "Company"), the co-investing
property asset manager, today placed 3,200,000 new ordinary shares (the "Placing
Shares") for cash ("the Placing"), representing just under 5% of the existing
issued share capital.  The shares were placed through UBS Limited at a price of
£7.00 per share.



The proceeds of the placing will be used to pay down debt, and strengthen the
Company's position for further repurchases of its Convertible Unsecured Loan
Stock (the "Loan Stock").  The Loan Stock was issued at £1 in 1996 with a right
to convert into ordinary shares at a price of £1.9448 per share.  The share
price has since risen to around £6.90 per share.  The premium over the original
subscription price paid on any Loan Stock repurchases will be claimed as a
corporation tax deduction.



Martin Barber, chief executive, said:

"We are aiming to simplify our capital structure by buying back as much of the
Loan Stock as we can afford.  At the same time we need to ensure that we have
sufficient funding to take advantage of profitable investment opportunities as
they arise".



                                    - ENDS -



For further information:

Capital & Regional:
Martin Barber, Chief Executive             Tel. [phone]
William Sunnucks, Group Finance Director   Tel. [phone]

UBS Limited
Edmund Craston/Nick Sanderson              Tel:  [phone]

gcg hudson sandler
Michael Sandler / James Benjamin           Tel:  [phone]



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.

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.

Over the last five years the Company has made 21 repurchases of equity.  The
total equity raised since flotation in 1986 is £184m, of which £95m has since
been repurchased.

On 29 October 2004, the Company announced the re-purchase of 17.1% of the Loan
Stock outstanding for £12.4 million.

For further information see www.capreg.com

Disclaimers

The Placing is conditional inter alia on the admission of the Placing Shares by
the UK Listing Authority, their admission to trading on the London Stock
Exchange, for which application has been made and commencement of dealings in
the Placing Shares.  Dealings in the Placing Shares, which will rank pari passu
in all respects with the existing ordinary shares in the Company, are expected
to commence on Monday 10 January 2005.



This announcement has been issued by, and is the sole responsibility of, Capital
& Regional.  UBS Limited is acting for Capital & Regional in connection with the
Placing and no-one else and will not be responsible to anyone other than Capital
& Regional for providing the protections offered to clients of UBS Limited nor
for providing advice in relation to the Placing.



Members of the public are not eligible to take part in the Placing.  This
announcement, in so far as it constitutes an invitation or inducement to
participate in the Placing, is directed only at persons who have professional
experience in matters relating to investments who fall within article 19(1) of
The Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as
amended) (the "Order") or are persons falling within article 49(2) (a) to (d) of
the Order (all such persons together being referred to as "Relevant Persons").
This announcement, in so far as it constitutes an invitation or inducement to
participate in the Placing, must not be acted on or relied on by persons who are
not Relevant Persons.  Any investment or inducement activity in so far as
relating to participation in the Placing is available only to Relevant Persons
and will be engaged in only with Relevant Persons.



The announcement does not constitute an offer of securities for sale in the
United States. The information contained herein is not for publication or
distribution to persons in the United States.  The Placing Shares have not been
and will not be registered under the U.S. Securities Act of 1933 (the
"Securities Act") and may not be offered or sold in the United States unless
they are registered with the U.S. Securities and Exchange Commission or pursuant
to an exemption from the registration requirements of the Securities Act.




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