New Retailers

Capital & Regional plc
25 July 2005

                                                                    25 July 2005

                              CAPITAL & REGIONAL PLC:
                         NEW RETAILERS AT THE JUNCTION HULL


Capital & Regional plc, the co-investing property asset manager, today announces
that its Retail Park Fund, The Junction, is delighted to announce eight new
national retailers for its £45 million Phase Three regeneration at The Junction,
St Andrew's Quay Retail Park, Hull.  Work is currently underway for Phase Three,
which when completed will add a further 137,000sq ft of retail and leisure space
to the existing 190,000sq ft retail park.

New retailers include Currys, Miller Brothers, PC World, Barker and Stonehouse,
Pets At Home, Pizza Hut and Frankie & Benny's.

The first two units of Phase Three opened recently with Currys occupying a
35,000sq ft unit and Miller Brothers occupying a 12,500sq ft unit.  Further
retail units are due to complete in September 2005. PC World has taken a
15,000sq ft unit on a 15-year lease at £22.50 psf and Barker and Stonehouse has
agreed to a 25-year lease at £18 psf on a 20,000sq ft unit. Pets At Home,
trading from an 8,000sq ft unit, has signed a 20-year lease at £20 psf.

Pizza Hut and Frankie and Bennys are set to occupy units of 3,200sq ft and 3,500
sq ft respectively, based upon 25-year leases at £25 psf.

A further phase will include the revitalisation of the former dock basin at St
Andrews Quay, which has remained derelict since the late 1970s, to create in
excess of 200 residential units and a trawler men's memorial garden.  The Lord
Line building, once serving as a beacon for returning ships, is an essential
element of Hull's heritage, and as such, will be retained with a view to
considering its future use.

Andrew Lewis-Pratt, CEO of The Junction comments, "We are pleased that Currys
and Miller Brothers are both now open and trading successfully, and the
commitment of other national retail and restaurant operators, such as PC World
and Frankie & Benny's, further unlocks the potential of this exciting
regeneration scheme."

This Phase of the development is adjacent to the existing 190,000 sq ft retail
park, which opened its doors to the public in April 2003.  Tenants include B&Q,
Halfords, SCS, Comet, DFS, Makro, Carpetright, Klaussner, Land of Leather,
McDonalds, Starbucks, Jessops, Carphone Warehouse and Subway. The retail park is
located adjacent to the A63 and next to the River Humber.


Notes to editors:


About The Junction

The Junction owns and operates a £1.2 billion destination retail park portfolio,
which includes 19 prime retail parks located throughout the UK.  Capital &
Regional and Morley Fund Management set up The Junction in 2002.

For further information visit:  www.thejunction-uk.com


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 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 and European 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 and the UK Pensions Awards Property Fund Manager
of the Year 2005, 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 thirteen specialist sector based funds, including the Jersey-based Unit
Trusts: Ashtenne Industrial Fund, Quercus Healthcare Property, The Junction and
The Mall.

www.morleyproperty.com

                                    - ENDS -


For further information:

Capital & Regional:

Martin Barber, Chief Executive                    Tel.  [phone]

Redwood Consulting:
Kate Hewson                                       Tel:  [phone]

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



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