Disposal

Capital & Regional plc
13 October 2006

                                                                 13 October 2006


                            CAPITAL & REGIONAL PLC:

               THE JUNCTION PURCHASES MORFA SHOPPING PARK, SWANSEA
                                FOR £105MILLION

Capital & Regional plc, the co-investing property asset manager, today announces
that it has completed the disposal of Morfa Shopping Park in Swansea to The
Junction, the leading retail park owner and operator, for £105million.  This
reflects a net initial yield of circa 4% and an equivalent yield of 4.7%.

Capital & Regional developed Morfa Shopping Park which comprises 265,000 sq ft
of mixed Open A1/Bulky Goods retail and is located adjacent to the new Liberty
Football and Rugby Stadium in Swansea.  Tenants on the park include TK Maxx,
Boots, Next, New Look, ASDA George, Sports World, Argos, Peacocks, Brantano
Footwear, B&Q, Frankie & Benny's, Brewers Fayre, Pizza Hut and KFC.

Claire Clark, the Fund Manager for The Junction Fund at Morley Fund Management
commented:

"A shopping park of this quality is highly sought after and is therefore a
significant acquisition for The Junction.  It enables us to increase our
exposure to the high rental growth offered by Open A1 units and coupled with our
recent secondary retail park sales we have successfully been able to rebalance
our portfolio.

The Junction Fund now represents approx 8% of the UK Retail Warehouse market (as
measured by IPD), and our investors have not only benefited from total returns
of over 27% pa since inception, but have also seen the strong diversification
benefits of investing in an active management fund of such scale."

Wilkinson Williams acted as independent property advisers for The Junction.


Notes to editors:

About 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.

Capital & Regional founded the Mall and Junction Funds in conjunction with
Morley Fund Management.  It also founded the X-Leisure fund with Hermes
Investment Management Limited, and has a number of other joint ventures and
developments.  Its shares are quoted on the London Stock Exchange.

For further information see www.capreg.com


About The Junction

The Junction owns and operates a £1.4 billion destination retail park portfolio.
Capital & Regional and Morley Fund Management set up The Junction in 2002.

Last month The Junction reported the disposal of four of its retail parks for
£160million at a 5.9% equivalent yield.  Several major refurbishments and
redevelopments are currently ongoing across The Junction's prime retail park
portfolio, including major initiatives at Wembley, Thurrock and Oldbury.

The Junction retail park disposals:-

•  Allied Irish Bank Private Banking represented by Cheval purchased the
   211,652 sq ft Euro Retail Park in Ipswich for £66.34million, reflecting a net
   initial yield of 4.44% and an equivalent yield of 5.38%.

•  Glanmore Property Fund purchased Beckton Retail Park for £49.7million,
   reflecting a net initial yield of 5.09% and an equivalent yield of 5.84%.

•  Tulip Retail Park in Leeds was purchased by the BBC Pension Fund for
   £16million, reflecting a net initial yield of 4.19% and an equivalent yield 
   of 7.32%.

•  Propinvest Holdings Ltd purchased Renfrew Retail Park, Renfrew for 
   £27.75million reflecting a net initial yield of 6.27% and an equivalent 
   yield of 6.27%.


Morley Fund Management

Firms within the Morley group of companies manage £157bn from offices around the
world as at 30 June 2006.  The property team manages in excess of £23bn of UK
and European property assets, making Morley the largest property fund manager in
Europe.

The property team consists of 70 investment professionals and manages a range of
funds on behalf of institutional, pension and retail clients.

For further information see www.morleyproperty.com



                                    - ENDS -



For further information:

Capital & Regional:
Martin Barber, Chief Executive                             Tel. [phone]



Redwood Consulting:
Kate Hewson                                                Tel:  [phone]




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