Investment

Capital & Regional plc
11 December 2003


                                                                11 December 2003

                            CAPITAL & REGIONAL PLC:
                         HERMES INVEST £35M IN THE MALL
                   - Third institution to invest during 2003


Capital & Regional plc, the specialist co-investing property asset manager, is
delighted to announce that Hermes Property Asset Management, acting on behalf of
Royal Mail Pension Plan, invested £35 million in The Mall Limited Partnership on
4 December 2003.

This announcement follows completion of the recent £49 million purchase of the
Marlands Shopping Centre, Southampton, also from Hermes.  The Marlands is one of
Southampton's established shopping destinations, offering 48 stores over two
floors with a total of 17,650 sq m (190,000 sq ft) of retail accommodation in
the city centre.

Hermes is the third institution to invest in The Mall Fund this year.  The
Prudential invested £31.2 million in April and ISIS Property recently invested
£115 million in the form of The Castle Mall, Norwich in September.  This
transaction has diluted Capital & Regional's share of the Mall fund from 36.7%
to 34.7%.

The Mall Fund currently has assets of approximately £1.17 billion in 15 shopping
centres throughout the UK extending to over 4.7m sq ft of retail space.  The
Mall Fund is on track to achieve its goal to grow assets to £2 billion.

Commenting on the deal, Martin Barber, Chief Executive of Capital & Regional,
said: "We are delighted to have attracted such a respected investor as Hermes.
Their investment provides a larger asset base over which to gear our expertise
to create value".

Ken Ford, Chief Executive of The Mall, said: "I'm delighted to welcome Hermes to
The Mall.  Their investment underlines our institutional backing following the
addition of the Prudential and ISIS Property during 2003.  We are looking to
continue this positive trend in 2004."

Richard Low at Hermes Retail comments:  "This vehicle provides another
opportunity for us to increase our exposure to shopping centres with a strong
performance record, which, of course, includes the Marlands."


Notes to Editors:

About Capital & Regional plc

Capital & Regional is the co-investing asset manager which 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
runs the three X-Leisure funds and has a number of other joint ventures and
developments.  For further information:  www.capreg.com

About The Mall

The Mall is the brand name of The Mall Limited Partnership, established by
Morley Fund Management and Capital & Regional plc to own and operate community
shopping centres throughout the UK.  The Mall has assets of over £1.17 billion
in 15 shopping centres and has plans to grow assets to £2 billion in up to 30
locations, establishing The Mall as the UK's Community Shopping Centre brand.
For further information visit:  themall.co.uk


                                    - ENDS -


For further information:

Martin Barber, Chief Executive, Capital & Regional           Tel:  [phone]
Ken Ford, Chief Executive, The Mall                          Tel:  [phone]
William Sunnucks, Group Finance Director                     Tel:  [phone]

Hudson Sandler
Michael Sandler / Wendy Baker                                Tel:  [phone]


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