Disposal

Capital & Regional plc
02 April 2004


2 April 2004


                 PILLAR PROPERTY PLC AND CAPITAL & REGIONAL plc
        EXCHANGE ON SALE OF GLASGOW FORT TO HERCULES FOR £194.7 MILLION


The partnership comprising Pillar Property PLC ("Pillar") and Capital & Regional
plc ("C&R") has exchanged contracts to sell the leasehold interest in its
Glasgow Fort Shopping Park to the Hercules Unit Trust ("Hercules") for £194.7
million.

The sale of the 35,110 sq m (378,000 sq ft) Open A1 shopping park is subject to
approval by the Hercules unitholders and Glasgow City Council ("GCC").  Pillar
is property adviser to, and owns a 35% stake in Hercules.

The park, located at Junction 10 of the M8 Motorway, is a major regeneration in
conjunction with GCC. It is currently under construction and completion of Phase
One is due at the end of October 2004. It will provide 27,870 sq m (300,000 sq
ft) of non-food retail accommodation with no restrictions on use or unit size.
Planning also exists on Phase One for 5,825 sq m (62,700 sq ft) of leisure and
1,390 sq m (15,000 sq ft) of food and beverage use.  Total development costs are
in the region of £142 million.

The 74 retail units in Phase One range in size from 46.5 sq m (500 sq ft) to
2,320 sq m (25,000 sq ft) and are already 70% pre-let or under offer to major
anchors including Boots, JD Sports, Borders, Argos, Virgin, TK Maxx, JJB Sports
and also key fashion tenants including Next, Arcadia and River Island.

Raymond Mould Chairman of Pillar and Martin Barber, Chief Executive of C&R
commented:

"Glasgow Fort promises to be one of the most successful shopping parks in the UK
reflecting the superior shopping environment which has been created. The high
level of prelets and quality of the tenants attracted underlines the success of
our excellent working partnership."


                                     -ENDS-


For further information, please contact:


Pillar Property PLC                                 Tel: [phone]
Martin McGann


Gavin Anderson & Company                            Tel: [phone]
Charlotte Stone / Neil Bennett


On behalf of Hercules
Financial Dynamics                                  Tel: [phone]
Dido Laurimore/Stephanie Highett


Capital & Regional plc                             Tel:  [phone]
Martin Barber / William Sunnucks


Hudson Sandler:                                    Tel:  [phone]
Andrew Hayes / James Benjamin




Notes to Editors:

Pillar Property plc

Pillar Property is the leading manager of Retail Parks in the UK with over 5.2
million sq ft under management (source: The Definitive Guide to Retail & Leisure
Parks 2003, FPDSavills Commercial and TW Research Associates 2003).

The majority of Pillar's other investments are in the form of units in the
Hercules Unit Trust (of which all the assets are retail parks). At 28 March
2004, Pillar owned 35% of Hercules. It also retains a 36% stake in the City of
London Office Unit Trust (of which all assets are City of London office
properties). Pillar is also property adviser to both these trusts which, as at
31 March 2003 had, in aggregate, investment portfolios of approximately £2.47
billion. Pillar receives management fees on the trust portfolio and performance
fees dependent upon trust investment performance exceeding certain benchmarks.

Further details on the company and assets can be found on the website:
www.pillarproperty.com.


Capital & Regional plc

Capital & Regional is the co-investing 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 and has a number of
other joint ventures and developments.

For further information see www.capreg.com


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