Acquisition

Capital & Regional plc
07 April 2004

                                                                    7 April 2004


                            CAPITAL & REGIONAL PLC:

       THE MALL ACQUIRES GLOUCESTER SHOPPING CENTRE FOR £40 MILLION FROM 
                               CATALYST CAPITAL


Capital & Regional plc, the co-investing property asset manager, today announces
that The Mall, the UK's leading investor and operator of community shopping
centres, has acquired Eastgate Shopping Centre in Gloucester, from Canterbarn
Limited, one of Catalyst Capital LLP's joint venture vehicles, for £40 million.


Eastgate Shopping Centre, Gloucester's principal established covered shopping
destination, opened in 1971. Having undergone comprehensive refurbishment in
1995, the Centre now provides approximately 26,900 sq m (290,000 sq ft) of
retail and ancillary accommodation. Retailers represented in the centre include
H & M Hennes, M&S, Woolworths, JJB Sport, Sports Soccer and Specsavers. The car
park provides 371 rooftop spaces.


Nicholas Tribe, Director of Portfolio Management at Catalyst Capital commented:

"We purchased Eastgate Shopping Centre in the summer of 2002 and, since then,
have embarked upon successfully re-working the asset by improvement in the
occupier mix which we are sure The Mall will continue to take forward."


Ken Ford, Chief Executive of The Mall says;

"Eastgate Shopping is another excellent acquisition situated in the centre of
the historic city of Gloucester which benefits from an estimated local catchment
population of over 200,000 people.  Gloucester is an under-shopped destination
and we see a significant opportunity to satisfy latent retailer demand while
contributing to the strong community of Gloucester."


Conroy Laurie and Strutt and Parker advised The Mall and Lunson Mitchenall and
Chapman Petrie advised Catalyst Capital.



                                    - 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]
Michael Sandler/James Benjamin, 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 brand name of The Mall Fund, established by Morley Fund
Management and Capital & Regional plc to own and operate community shopping
centres throughout the UK. The Mall has assets of over £1.3bn in 16 shopping
centres and has plans to grow assets to £2bn in up to 30 locations, establishing
The Mall as the UK's Community Shopping Centre brand.

For further information, visit themall.co.uk



About Catalyst Capital

Catalyst Capital LLP is a substantial pan-European commercial real estate
investment and asset management group. Headquartered in London, with offices in
Paris, it has acquired a significant portfolio of city centre and provincial
offices, retail centres and distribution and industrial complexes, in
partnership with institutional and private investors.

Catalyst Capital Limited Liability Partnership (CC LLP) of the United Kingdom is
a pan-European real estate investor and asset manager.

During the last eight years CC LLP has purchased in excess of £1.3bn (€1.8 bn)
of real estate assets in the UK and France, comprising prime and secondary
office and industrial properties and over 20 town centre retail schemes. These
acquisitions have been both asset and corporate purchases and are undertaken in
partnership with several American, British and French investment funds, based
upon either opportunistic or value-added strategies.

CC LLP has also structured several transactions in mainland Europe for American
investment funds, totalling some US $500m.

The Principals of CC LLP have found and structured the transactions and provide
the ongoing asset management.

CC LLP continues to actively pursue investments both in the UK and in mainland
Europe.

Catalyst Capital LLP has acquired in the last year:

Quartet Portfolio: a £96.6 million mixed-use UK portfolio

Les Docks: a 82,755 sq. m. office complex in Marseilles, France for € 95 million

Le Dufy: a € 30 million single asset office building of 12,800 sq. m. outside
Paris, France.

Otis Portfolio: a £310 million UK retail portfolio

J Sainsbury Developments Ltd: a £165.5 million retail, warehouse and office
development portfolio of 170,000 sq m.




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