MALL FUND GBP 1BN BOND ISSUE

Capital & Regional plc
20 April 2005

                                                                   20 April 2005

                             CAPITAL & REGIONAL PLC

                           MALL FUND £1BN BOND ISSUE


Below is the text of a press release issued today by The Mall Fund, the leading
owner and operator of community shopping centres in the UK founded by Capital &
Regional plc in conjunction with Morley Fund Management, concerning the above.
Capital & Regional plc holds a 26.9% stake in the Fund.


Enquiries:

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

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


THE MALL FUND £1BN BOND ISSUE

The Mall Fund, the shopping centre fund managed by Morley Fund Management and
Capital & Regional, is refinancing £1.06bn of bank debt. This is believed to be
the largest single tranche of Sterling AAA rated Commercial Mortgage Backed
Securities ever issued - this AAA rating being awarded by all three rating
agencies - Fitch, Moody's and S&P.  The MallBonds will be listed on the Irish
Stock Exchange and have been priced at LIBOR +18 bps.


The benefits for the Mall and its investors are:
     
•    Additional returns to Mall investors of £6m per annum due to reduced
     interest costs

•    Flexibility to allow the Fund to exploit asset management opportunities

•    Extra protection against future interest rate movements

•    A new £300m Revolving Credit Facility which supports the growth of The
     Mall business

•    The average duration of the Mall's debt will increase from 4 to 7 years

Commenting on the refinancing Philip Nell, Fund Manager for The Mall at Morley
Fund Management, said:

"This is a major and innovative deal in terms of size and quality but, more
importantly, our decision to refinance The Mall Fund's debt is of significant
bottom line benefit to our investors. To have achieved a AAA-rating from all
three rating agencies is testament to the quality of the Fund's assets, and the
integrity of the business model."

Ken Ford, Chief Executive of The Mall, comments:

"The AAA rating confirms the effectiveness of The Mall's revenue based, direct
management model and our disciplined investment approach.  The innovative
structure of this refinancing arrangement also gives us the operational
flexibility we require to continue offering excellent returns for our investors.
Following our third year of outperformance we are looking forward to continuing
to grow The Mall's portfolio pushing towards our target of 30 community shopping
centres across the UK within three years."

Credit Suisse First Boston was the lead manager and joint book-runner on the
transaction.

Further information on the refinancing

At present 50% of the value of The Mall portfolio is financed by a syndicated
loan facility and a working capital facility.  The MallBonds and the £300m
revolving credit facility will replace all existing fund debt, but will not
involve the release of any equity.

The MallBonds are secured on 20 out of the 22 Malls.  Interest is payable at
LIBOR + 0.18% and the repayment date is 2012.  Significant flexibility has been
negotiated into the terms of the MallBonds with regards to:
     
•    Occupational leasing

•    Capital expenditure

•    Acquisitions and disposals

The interest rate has been fixed on £825m of the borrowing for seven years
through the execution of interest rate swaps.

The £300m revolving credit facility is secured on the remaining 2 Malls and has
a second charge over the other 20.  It is intended for use in financing
acquisitions and developments and to allow increased efficiency in the
management of working capital.

Further information on The Mall

The Mall was established by clients of Morley Fund Management and Capital &
Regional plc in 2002 and since then has grown to over £2 billion in size with 22
shopping centres in its portfolio.  Institutional investors in The Mall include
Hermes Property Asset Management, F&C Asset Management, Norwich Union,
Prudential Property Investment Managers, ING Real Estate, Scottish Widows
Investment Partnership and Arlington Property Investors.

The total return to investors since the launch of The Mall in March 2002 has
averaged nearly 30% per annum.  It has outperformed its benchmark, the IPD
Annual Shopping Centre Series, at a geared and ungeared level every year since
its formation.

The Mall has continued to expand its portfolio across the UK with the
acquisition earlier this year of Main Square in Camberley for in excess of
£130m.  In addition, The Mall purchased six shopping centres during 2004 -
Gloucester, Preston, Bristol, Blackburn, Maidstone and Middlesborough - in deals
totalling almost £700m. The Mall plans to expand its portfolio to 30 centres
over the next three years, establishing The Mall as the UK's leading community
shopping centre brand.


Stabilisation / FSA

                                    - Ends -



For further information please contact:

Redwood Consulting for The Mall
Liz D'Oliveira / Paul Haines                             020 7224 4300

Morley Fund Management                                   020 7809 8617 /
Fiona Baker / Laura Cook                                 020 7809 8125



NOTES TO EDITORS

About Morley Fund Management

Morley Fund Management ('Morley') is a London based, asset management business
with over £128 billion* under management. The property team manages in excess of
£15 billion* of UK Property assets, making Morley one of the largest property
fund managers in the UK. Winners of the high profile Property Week Fund Manager
of the Year Award 2004, the team consists of 60 investment professionals and
manages a range of funds on behalf of institutional, pension and retail clients.
Morley has been at the forefront of innovation in property fund management and
has launched eleven specialist sector based funds with partners, including the
Jersey-based Unit Trusts: Ashtenne Industrial Fund, Quercus Healthcare Property,
The Junction and The Mall.  Visit www.morleyproperty.com

*Not including mortgage assets, as at 31/12/04


About Capital & Regional plc

Capital & Regional plc 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.


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