Partnership with Pillar

Capital & Regional PLC
11 January 2002


                                                               11 January 2002



                            CAPITAL & REGIONAL PLC

                 Partnership formed with Pillar Property PLC
               to develop Glasgow's first major Shopping Park.


Capital & Regional plc announces today that it has formed a partnership, with
Pillar Property PLC to develop Glasgow's first Shopping Park.



The proposed 480,000 sq ft scheme will be known as the Glasgow Fort and is
located at Junction 10 of the M8, 5 miles to the east of Glasgow City Centre.



The site, currently known as Auchinlea Park extends to approximately 90 acres
and has outline planning consent to enable the development of a Shopping Park
with ancillary leisure features.  A detailed planning application has been
submitted to Glasgow City Council and is expected to be determined within the
first quarter of this year.  Planning consent has also been granted for
Glasgow City Council to develop a 130,000 sq ft food store on adjoining land.



Capital & Regional's existing 100,000 sq ft Junction 10 Retail Park valued at
£15.7 million at 24th June 2001, forms part of the 50:50 partnership.  Capital
& Regional and Pillar have each committed £6 million to the partnership by way
of initial capital, and the partnership is also part financed by a loan from
Barclays Bank.



Upon receipt of detailed planning permission, it is intended that the Glasgow
Fort development be phased with completion of approximately 375,000 sq ft of
predominantly retail space with ancillary restaurants, health club and hotel,
anticipated by mid 2004.  Construction is due to commence in the summer of
this year and the whole scheme is due to be completed by late 2005.



Marketing of the scheme has just commenced via letting agents Montagu Evans,
Fisher Wilson and Harvey Spack Field, for which tenant interest is reported as
strong.



Andrew Lewis-Pratt, Executive Director of Capital & Regional, commented:



'Since acquiring Junction 10 Retail Park in 1997, which was the gateway to the
proposed development, we have successfully obtained planning consent for a
major Shopping and Leisure Park, rather than a traditional retail park which
was our original intention.  We are extremely pleased to be working with
Pillar, who are the ideal partners for the development we are now planning.'



Raymond Mould, Chairman of Pillar, commented:



'We are delighted to team up with Capital & Regional to develop Glasgow's
first major shopping park and envisage the scheme will be of the same calibre
as our existing 'jewel' holdings, such as Fort Kinnaird in Edinburgh and Fosse
Park in Leicester.'



Montagu Evans advised Capital & Regional and Harvey Spack Field advised
Pillar.



Enquiries:



Capital & Regional plc

Andrew Lewis-Pratt, Executive Director:       Tel:         [phone]

Martin Barber, Chief Executive:               Tel:         [phone]

www.capreg.com



Hudson Sandler

Andrew Hayes/Wendy Baker:                      Tel:        [phone]



Pillar Property plc

Raymond Mould, Chairman:                       Tel:            020 7915 8000

Humphrey Price, Finance Director:              Tel:            020 7915 8000

Valentine Beresford, Director:                 Tel:            020 7915 8000



Gavin Anderson & Company

Neil Garnett/Charlotte Stone:                   Tel:          [phone]