Acquisition

Capital & Regional plc
11 August 2005


                                                                  11 August 2005



                        CAPITAL & REGIONAL PLC AND HERMES:
       
                    NEW INVESTORS AND PROPERTY FOR X-LEISURE


The X-Leisure Unit Trust, the Capital & Regional and Hermes managed specialist
leisure fund, is delighted to announce that it is welcoming four new
unit-holders and has purchased Queen's Links Leisure Park in Aberdeen.


The four new unit-holders are John Lewis Partnership Pensions Trust Limited,
Lloyds TSB Group Pension Scheme, Merrill Lynch Property Fund and Merrill Lynch
UK Property Fund of Funds, investing a total of £37 million through primary
issuance and secondary trades.


This week also saw the X-Leisure Unit Trust complete the purchase of Queen's
Links Leisure Park, Aberdeen from the Legendary Property Company for £22.15m, at
an effective initial yield of 6.48%.  The leisure park is 128,000 sq ft (11,891
sq m) and the tenants include UGC, Pizza Hut, Frankie & Benny's, Chiquitos,
Whitbread and Gala Bingo.


This purchase follows the acquisitions of Cambridge Leisure Park in March this
year and the high-profile purchase of Brighton Marina in September 2004.


PY Gerbeau, X-Leisure Chief Executive, comments:

"Queens Link Leisure Park is another excellent purchase for X-Leisure.  The
X-Leisure approach is all about creating industry leading leisure destinations
that combine exciting sports and leisure activities with the best in retail,
catering and entertainment to provide a truly regional attraction.


Our highly skilled leisure management team underpins this approach.  The team
has a strong understanding of our tenants needs and our unique asset management
and development initiatives have proven to increase footfall and dwell time at
our venues across the country.


We are confident that our active management approach will benefit Queens Link
Leisure Park, as it does the rest of our portfolio, and enable us to continue to
deliver outperformance for our investors."


Alasdair Evans, Hermes' Fund Director of X-Leisure, commented:


"We are delighted to welcome these blue chip investors, confirming the X-Leisure
Unit Trust as the leading leisure property fund.  This continued expansion of
the investor base enables us to grow the portfolio while maintaining strong
returns for all investors."


Charles Whittle of McCafferty Management, advisors to the vendor commented:

"We are delighted to have concluded the sale of Queens Link on behalf of
Legendary Property Service, and wish X-Leisure every success in the future with
this new acquisition"


X-Leisure, the leisure property division of Capital & Regional, is responsible
for the management of the X-Leisure Fund and the Xscapes.  It is the UK's
fastest growing premier leisure brand, with 19 major leisure destinations around
the UK including the award-winning Xscape attractions at Milton Keynes and
Castleford Leeds, with the new Xscape Braehead Glasgow opening in Spring 2006 in
addition to the 16 leisure parks in the X-Leisure Unit Trust. Other prestigious
destinations within the portfolio include Brighton Marina, 02 Centre London,
Star City Birmingham and the recently acquired 133,000 sq ft Cambridge Leisure
Park.



With a passion for providing the very best and most innovative family leisure
and entertainment attractions, X-Leisure is behind the UK's largest indoor real
snowslopes (Xscape Milton Keynes & Castleford), casino (StarCity) and largest
multiplex cinema (StarCity).  More than 45 million people visited X-Leisure
attractions last year enjoying a wide range of facilities from bowling, cinema
and casinos to waterparks and extreme sports.



Notes for editors:

1.  The X-Leisure Unit Trust is a Jersey based unit trust created in June 2004.

2.  At 30 June 2005, the X-Leisure Unit Trust contained gross assets of
    £633.5 million, and net assets of £257.8 million.

3.  During the year to 30 June 2005, investors in the X-Leisure Unit Trust
    have seen returns of 22%.



                                    - ENDS -



For further information:

X-Leisure
PY Gerbeau, Chief Executive of X-Leisure             Tel.  [phone]

Redwood Consulting:
Paul Haines                                          Tel:  [phone]

gcg hudson sandler
Michael Sandler / James Benjamin                     Tel:  [phone]


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