Disposal

Capital & Regional plc
24 October 2005

                                                                 24 October 2005





                            CAPITAL & REGIONAL PLC:

 THE MALL SELLS THE PALLASADES SHOPPING CENTRE IN BIRMINGHAM FOR £151.5 MILLION



Capital & Regional plc today announces that The Mall, its Shopping Centre Fund
managed jointly with Morley Fund Management, has sold The Pallasades Shopping
Centre in Birmingham to Agora Max, a new fund created by Warner Estate and Bank
of Scotland, for £151.5m, slightly above the book value at which it was held in
the Mall Fund.



The Pallasades, located directly above New Street Station is a 300,000 sq ft
(27,781 sq ft) centre with 88 retail units and retailers including Argos, HMV,
Woolworths, Peacocks and Starbucks.



Ken Ford, Chief Executive of The Mall says:

"We are delighted to have sold The Pallasades to Warner and wish them every
success with their plans."



Strutt & Parker advised The Mall and DTZ advised Warner Estate.

For further information:

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

Redwood Consulting:
Paul Haines                                   Tel:  [phone]

Hudson Sandler
Michael Sandler / James Benjamin              Tel:  [phone]














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 Mall

The Mall is the leading owner and operator of community shopping centres in the
UK.  The Mall has assets of £2.3 billion in 22 shopping centres and has plans to
grow assets to 30 centres, establishing The Mall as the UK's community shopping
centre brand.  Capital & Regional and Morley Fund Management set up The Mall
Fund in 2002.

For further information see www.themall.co.uk








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