Disposal

Capital & Regional PLC
11 December 2002





                                                                11 December 2002



CAPITAL & REGIONAL PLC SELLS 50% INTEREST IN CAPITAL HILL PARTNERSHIP TO HERMES
                              PROPERTY UNIT TRUST



Capital & Regional plc ("Capital & Regional") today announces that it has sold
its 50% interest in the Capital Hill Partnership to Hermes Property Unit Trust
("HPUT").  The Partnership has one asset, The Maybird Centre at
Stratford-upon-Avon which currently offers 160,000 ft of space, but also
comprises of adjoining land for redevelopment.  Existing tenants include Boots,
JJB Sports, B&Q and Brantano.  The interest has been sold for £20m, which is
based on an initial yield of 5.3% and an equivalent yield of 6.2%. The December
2001 year-end valuation of the property was £37.5m.  The consideration has been
satisfied in cash.



Capital & Regional has been appointed by HPUT as its asset manager on the basis
of a base management fee, and will also receive performance fees subject to
various hurdles.



Andrew Lewis-Pratt, Managing Director of Retail Parks, said:



"This was a transaction very much in keeping with the Group's move towards being
an asset manager as opposed to an owner of property."



Freddie Coupe, Investment Manager, Property, Hermes Property Asset Management,
said:-



"The retail sector is currently the best performing sector with retail
warehouses in particular in high demand both by investors and occupiers.  Yields
are continuing to be forced down and new rent levels set."



"A strategic objective of the PUT has been to enhance its exposure to open A1
retail warehouse parks.  This purchase takes HPUT's exposure to the sector to
30% of total portfolio value."

                                     -ends-



For further information please contact:



Martin Barber, Chief Executive, Capital & Regional plc  0207 932 8000


Andrew Lewis-Pratt
Managing Director of Retail Park, Capital & Regional    0207 932 8000



Debbie Cracknell, Redwood Consulting                    0207 494 0303



Freddie Coupe Investment Manager Property

Hermes Property Asset Management                        020 7702 0888






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