Acquisition

Capital & Regional plc
14 May 2004











                                                                     17 May 2004



CAPITAL & REGIONAL PLC:

THE MALL ACQUIRES ST. GEORGE'S SHOPPING CENTRE IN PRESTON FOR £102.5M



Capital & Regional plc, the co-investing property asset manager, today announces
that The Mall has bought St George's Shopping Centre in Preston from Legal &
General for £102.5m.  This latest acquisition brings The Mall's current
portfolio to £1.425 bn invested in 17 Malls.

St George's Shopping Centre is Preston's principal covered shopping destination.
The centre opened in 1964 and underwent a major £23m refurbishment in 2000,
which increased its area by   45% to the current 25,083 sq m (270,000 sq ft). St
George's has around 106 retail units and retailers represented in the centre
include M&S, H&M, Arcadia, New Look, WH Smith and Clinton Cards.  As part of the
refurbishment in 2000 the six-storey, 420 space car park was also rebuilt.


Ken Ford, Chief Executive of The Mall says:

"St George's is another excellent purchase for The Mall.  The Council's exciting
redevelopment plans for the Tithebarn area are planned to ensure that central
Preston remains one of the most important and vibrant retail offers in the
region.  We will be working hard to ensure The Mall makes a meaningful
contribution to this."

Philip Nell, Fund Manager of The Mall Fund at Morley Fund Management comments:

"We are very pleased to have successfully acquired such a well-suited asset for
The Mall Fund, and look forward to the scheme forming a key part of our aim to
deliver continued out-performance for our investors.  The fund has had a very
successful month, having completed on the purchase of The Eastgate Centre in
Gloucester in early April."

Helen Gordon, Life Fund Director of Legal & General says:

"The sale of Preston is a key step in the delivery of the Life Fund shopping
centre strategy, which started with our acquisition of Midsummer Place, Milton
Keynes at the end of 2003 and our ongoing commitment to developing and
refurbishing centres".



Strutt and Parker advised The Mall and DTZ Debenham Tie Leung advised Legal &
General.

                                    - ENDS -



For further information:
Capital & Regional plc
Martin Barber, Chief Executive, Capital & Regional          Tel:  [phone]
Ken Ford, Chief Executive, The Mall                         Tel:  [phone]
William Sunnucks, Group Finance Director                    Tel:  [phone]


Liz D'Oliveira/Paul Haines, Redwood Consulting              Tel:  [phone]
James Benjamin / Andrew Hayes, Hudson Sandler               Tel:  [phone]







Notes to Editors:



About Capital & Regional plc

Capital & Regional is the co-investing property asset manager which specialises
in town centre shopping centres, out of town retail parks, and urban
entertainment complexes.  It founded the Mall and Junction Limited Partnerships
in conjunction with Morley Fund Management.  Its shares are quoted on the London
Stock Exchange, and in addition to its management contract with and co-
investment in the Mall and Junction funds, it now runs the X-Leisure Fund with
Hermes as Fund Manager and also has a number of other joint ventures and
developments.

For further information see

www.capreg.com



About The Mall



The Mall is the leading owner and operator of community shopping centres in the
UK.  The Mall has assets of over £1.42bn in 17 shopping centres totaling 5.2m sq
feet, establishing The Mall as the UK's Community Shopping Centre brand.
Capital & Regional and Morley Fund Management set up The Mall Fund in 2002.



For further information, visit themall.co.uk




                      This information is provided by RNS
            The company news service from the London Stock Exchange