Proposed Acquisition

Property & Capital Group PLC
17 December 1999



Property & Capital Group Plc ('PCG')

Proposed Acquisition of Paragon Protected Growth Plc

PCG announces that it is today issuing an Offer for the entire issued share
capital of Paragon Protected Growth Plc ('Paragon').  In accordance with AIM
Rule 16.22 and 16.23(a) this is a substantial transaction and the following
information is given:

1. The business of Paragon is residential property investment.

2. The consideration is £3,437,581 payable in cash with an alternative of 3
PCG ordinary shares for each 5 Paragon shares.

3. The net assets of Paragon shown in its audited accounts to 30 June 1999
amounted to £3,521,723

4. The profit of Paragon for 14 months to 30 June 1999 and was £174,060.

5. The effect of the transaction on PCG will be to increase gross assets by
the amount of the gross assets of Paragon.  The level of net assets of PCG
will not increase substantially as the acquisition is being funded principally
by debt.

6. No changes to the Board of PCG of the remuneration or the Directors of PCG
will result from the acquisition.

7. The transaction will increase the residential property portfolio of PCG by
adding the properties of Paragon, all less than 10 years old, and should
provide economics of scale.

Contact :       D R MacDonald at PCG, telephone [phone]