Acquisition

Capital & Regional PLC
22 April 2002



                                                                   22 April 2002

                             Capital & Regional plc

The Junction Limited Partnership acquires four retail warehouse parks for £145m

       Commercial Union Life Fund to Invest £100m in Junction Partnership



The Junction Limited Partnership, the fund managed by Capital & Regional plc and
Morley Fund Management Limited, announces that it has exchanged contracts for
the purchase of four retail parks from Burford Holdings Limited for £145m.
Simultaneous to this acquisition, it also announces that Commercial Union Life
Fund has committed to invest £100m in the fund. The balance of the purchase
price is being financed with debt from the Royal Bank of Scotland plc.

The retail parks are, Octagon Retail Park in Stoke, Lakeside Extra Retail Park
in Thurrock, Euro Retail Park in Ipswich and Cockhedge Shopping Park in
Warrington. The total floor area is approximately 760,000 sq ft.

Andrew Lewis-Pratt, Chief Executive of The Junction Properties Ltd, said:

"We are pleased to have acquired these four major retail parks in to the fund.
Our strategy of expanding our existing portfolio of large scale parks over
120,000 sq ft is now well under way. The sites have the potential to add
destination stores to become the dominant retail parks in their catchment areas.
The parks offer plenty of scope to implement our skills of redevelopment and
active management to create additional value.

Initial reaction to our strategy has been very encouraging and we are now
looking forward to launching the first parks within our portfolio to benefit
from redevelopment and re-branding at East London and Hull this Autumn."

Ian Womack, Head of Property at Morley Fund Management, said:

"The acquisition of the Burford portfolio is in line with the stated Business
Plan objectives of The Junction to extend its brand to a critical mass of around
30 parks over the next 3 years. The Fund will also be looking to expand its
investor base, to provide the capital for the continued acquisition and
subsequent asset management of further parks."

The fund was formed earlier this year and comprised 11 retail parks with a value
of £336m. This latest acquisition increases the portfolio to 15 parks with a
purchase value of £481m. Capital & Regional and Morley believe that by merging
their skills and these particular large scale retail parks, there is a major
opportunity to enhance value by branding and the provision of innovative
additional attractions.

The Junction Partnership Ltd was represented by King Sturge and Burford by Franc
Warwick.

                                    - ends -



For further information please contact:

Andrew Lewis-Pratt, The Junction Properties Ltd          0207 932 8000

Mick Wheatley, Morley Fund Management Ltd                0207 809 6846

Andrew Hayes, Hudson Sandler                             020 7796 4133

www.thejunction-uk.com





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