German Joint Venture

Capital & Regional plc
20 July 2005

                                                                    20 July 2005

                             CAPITAL & REGIONAL plc

        Announcement of German Joint Venture and its first acquisitions


Capital & Regional plc, the co-investing property asset manager, today announces
the formation of a joint venture with the German property group Hahn AG, one of
Germany's leading co-investing property asset managers, to acquire and actively
manage out of town retail properties in Germany.

A €110m portfolio of eight out of town retail centres comprising 68,785m(2) has
now been assembled by the JV producing a rental income of €8.2m per annum.  The
net initial yield for the portfolio is 7%.  The portfolio includes properties
acquired from the existing portfolio of Hahn funds under management and the
tenants include Metro and subsidiaries (including Real), Rewe, Edeka and
Decathlon.

The portfolio is to be managed by Hahn AG which will have a 10% share of the
joint venture.  Hahn AG manages closed end property investment funds
specialising in retail property throughout Germany.  It was founded in 1982 and
has an established track record in the out of town retail sector, currently
managing closed end funds with an investment volume of €1.7bn and €660m of
equity.

It is the intention that the C&R / Hahn joint venture will expand by acquiring
similar investment properties in Germany, where the parties see potential in the
out of town retail market.  They are currently investigating a number of
opportunities where their joint management expertise will add value.  It is
hoped to be able to announce further acquisitions shortly.

The Bank of Scotland has provided senior debt for six of the properties through
its Frankfurt office.  The remaining two acquisitions were financed by Eurohypo
through its Dusseldorf office.  The weighted average cost of debt across the
portfolio is 3.9%.

Martin Barber, Chief Executive of Capital & Regional, said:

"In the Hahn Group we have a partner which has an undisputed track record in
managing retail property in Germany.  We recognise that property is a local
business and have therefore put considerable time and effort to into developing
the right management arrangements before investing.  We believe that our
combined expertise in financing and managing retail property will generate
attractive equity investment returns."

Bernhard Schoofs, Chief Executive of the Hahn Group, said:

"This joint venture is a significant strategic development for Hahn.  To date
the Hahn Group has focussed on initiating and managing closed ended property
funds.  It will now also be an active asset manager of large space retail
properties for German and international investors.  We look forward to working
with our friends at Capital & Regional where we will both benefit from our
mutual expertise in retail property investment."


                                    - ends -


For further information:

Capital & Regional
Xavier Pullen, Deputy Chief Executive                    Tel:  [phone]
William Sunnucks, Group Finance Director                  Tel: [phone]

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




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