New Investment

Capital & Regional plc
04 March 2008



                                                                    4 March 2008

                         CAPITAL & REGIONAL PLC:

         SIGNIFICANT NEW INVESTMENT IN THE FIX TRADE PARK UNIT TRUST


Capital & Regional plc, the co-investing property asset manager, today announces
a significant new investment and change in the management structure in the FIX
Trade Park Unit Trust.

The Capital & Regional FIX UK portfolio specialises in Trade Parks throughout
the UK.

Capital & Regional is delighted to welcome new investors into the fund led by
Paradigm Real Estate Managers Ltd and the Bank of Scotland Corporate.  These
investors have acquired an 80% interest in the existing Jersey Unit Trust which
holds the portfolio and plan to expand and develop the portfolio in this very
interesting and dynamic sector.

Paradigm Real Estate Managers and Capital & Regional will asset manage the
portfolio jointly and three members of the current Management Team will transfer
to Paradigm.  Paradigm and Bank of Scotland Corporate are already represented in
the Trade Park sector with a £55m portfolio of assets located across the UK.
This portfolio will be managed with the FIX portfolio to achieve scale economies
in management and market presence.

C&R has assembled the portfolio since 2005 and built it up to a gross value of
circa £180m including committed development expenditure.  The portfolio size is
1.7 million sq ft, comprising 51 Trade Parks in approximately 276 separate
units.  There is a pipeline of new developments under contract of 84,000 sq ft.

C&R is selling 80% of the units in the trade park unit trust for approx £35m
gross.  The transaction will remove £120m of debt from C&R's balance sheet,
although it will retain exposure to 20% of this amount as a co-investor.  In
addition, the sale of the units will generate cash to pay down £35m of the
Group's core facility.

In 2006 FIX contributed £200,000 towards Capital & Regional recurring profit.
The contract is unconditional and is due to complete on 6 March.

Bill O'Hara of Paradigm said "We are delighted with this investment in this very
interesting sector and look forward to working with C&R going forward.  By
combining the management of the FIX and UK PREM Trade Park Portfolios we will
have the largest trade park portfolio in the UK, in a sector which has
restricted supply, strong tenant covenants and a growing list of occupational
requirements".

Ross McNaughton of Bank of Scotland said: "We are similarly delighted with this
opportunity to invest alongside our longterm partners Paradigm as well as
Capital & Regional in the FIX UK Unit Trust where we anticipate sharing in the
performance of this specialist area of the commercial property market which
offers good rental growth potential and an excellent standard of occupational
space for tenants."

Xavier Pullen from Capital & Regional said: "This new fund offers the potential
for greater scale and presence in the market.  We look forward to working with
Paradigm and the new investors to create a significant business".

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.

For further information see www.capreg.com

About Paradigm Real Estate Managers Limited

Paradigm was established to provide a conduit for equity funds into the property
market on behalf of private individuals, companies and institutions.

The company provides opportunities to invest directly into the property market
by means of partnership and corporate structures.  Paradigm co-invests equity
jointly with investors in each project and asset manages each project or fund
through to completion and exit.

The current investment portfolio is around £1billion.



                                    - ENDS -



For further information:

Capital & Regional:
Xavier Pullen, Deputy Chief Executive                  Tel.  [phone]

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


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