Joint Partnership

Capital & Regional PLC
28 February 2001

                                                            28th February 2001


 CAPITAL & REGIONAL AND CAPITAL SHOPPING CENTRES FORM PARTNERSHIP TO DEVELOP  
                          XSCAPE CONCEPT AT BRAEHEAD                          

Capital & Regional plc, the specialist retail and leisure property company,
and Capital Shopping Centres PLC, the leading regional shopping centre
business, have entered into an exclusivity agreement to form a 50:50 joint
partnership to fund and develop the Xscape concept at Braehead, Glasgow,
subject to the fulfilment of a number of conditions, including planning.

The Capital & Regional Xscape concept is the ultimate in entertainment,
leisure and lifestyle retailing.  The first Xscape in Milton Keynes comprises
550,000 sq ft and includes the UK's largest indoor 'real' snow ski slope, the
Snozone; an Esporta health and fitness club; a CINEWORLD mulitplex cinema; two
state of the art climbing walls and Scottish & Newcastle's 'City Limits'
entertainment centre with a 24 lane ten-pin bowling alley.  Xscape also offers
a range of new concept bars, restaurants and retailers.

Braehead Shopping Centre (800,000 sq ft) and Retail Park (260,000 sq ft) are
the first phase of a major regeneration on the banks of the River Clyde in
Glasgow.  The shopping centre has 107 shops including Marks & Spencer, 2 ice
rinks, a 4,000 seat arena and there is parking for 6,500 cars.  A 264,000 sq
ft Ikea will open in September.

An outline planning application has been made for Braehead Phase 2 - a mixed
use development covering a further 145 acres, including residential and office
uses as well as Xscape, which will occupy a riverfront site beside the
shopping centre.

Martin Barber, Chief Executive of Capital & Regional said: 'We are delighted
to be working alongside Capital Shopping Centres on this exciting project. 
Our Xscape scheme in Milton Keynes has been extremely successful with both the
consumer and retailer, attracting over 2.7 million visitors since opening last
June.  Braehead provides an excellent location and catchment area for Xscape
and its offer.'

Douglas Leslie, Managing Director of Capital Shopping Centres said: 'Braehead
was visited in its first year by some 16 million people from a wide catchment
area.  It is now established as a major shopping and leisure destination.  The
Xscape concept, the first of its kind in Scotland, will provide a major new
attraction and create many more new jobs for the region.'

For further information please contact:

Andrew Lewis-Pratt, Managing Director, Retail Parks & Xscape or
Sarah Carrell, Corporate Communications at Capital & Regional 
on tel: [phone]

Douglas Leslie, Managing Director, Capital Shopping Centres 
on tel: [phone]