Investment in The Mall Fund

Capital & Regional plc
24 March 2006

                                                                   24 March 2006


                           CAPITAL & REGIONAL PLC:

               ABP, SPARINVEST, COLLIERS CAPITAL AND OPC INVEST 
                          OVER £90M IN THE MALL FUND
 

The Mall Fund, the shopping centre fund managed by Morley Fund Management and
Capital & Regional, today (24 March 2006) announces that four new investors have
acquired units for £90m.  ABP, Europe's largest pension fund, and Sparinvest are
the first Continental European investors to come in, whilst Colliers Capital and
OPC have invested on behalf of two UK-based pension funds.  The investment by
Sparinvest Property Fund is its first in the UK, and the first for their new
global Fund of Funds mandate.

The Mall Fund has produced an overall return to investors of over 25% pa since
it was formed in 2002 and 22% in the 12-month period to the end of December
2005.

Philip Nell, Fund Manager for The Mall at Morley Fund Management comments:

"With 23 shopping centres now in The Mall Fund, we own around 9% of the UK
institutionally benchmarked shopping centre market.  This means we can offer a
very high degree of risk diversification within the sector, which is obviously
very attractive to potential investors.  In particular we are delighted to
welcome our first two investors from continental Europe, a sign that the retail
market in the UK is still a strong draw."

Ken Ford, Chief Executive of The Mall comments:

"The innovative operational and fund management approach we take continues to
drive strong performance for our investors.  Last year we spent over £678m on
new Malls and plan to grow the Fund to 30 within the next 2 to 3 years.  The
Mall is all about providing our retail partners with the best possible
environment to do business and it is this collaborative approach that sets us
apart in the sector, enabling our retailers to make more money and for us to
enhance returns for our investors"

The Mall Fund, launched in March 2002, was established by clients of Morley Fund
Management and Capital &Regional plc to own and operate community shopping
centres under The Mall brand, throughout the UK.  The Mall was launched with
assets of £656m comprising 11 shopping centres.

Four years on investors in the fund include ING Real Estate, Prudential Property
Investment Managers, Scottish Widows Investment Partnership, Hermes Real Estate,
F&C Asset Management, Arlington Property Investors, Capital & Regional and
Morley Fund Management.  As at March 2006, The Mall Fund has assets of
approximately £2.79bn in 23 shopping centres throughout the UK making it the
largest UK sector focussed property fund.  The Mall manages over 8.2m sq ft of
retail space, hosting 1,000 retailers and welcoming over 230 million shoppers a
year.

DTZ Corporate Finance acted for Morley Fund Management in the sale of this
equity.

                                    - ends-

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 visit:   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 £2.79 billion in 23 shopping centres and has plans
to grow assets to 30 centres, establishing The Mall as the UK's community
shopping centre brand.  The Mall Fund is a specialist property fund managed by
Capital & Regional and Morley Fund Management.

For further information, visit:  www.themall.co.uk


About Morley Fund Management

Morley Fund Management Limited is the UK-based asset management business of
Aviva plc.  Firms within the Morley group of companies manage £155bn from
offices around the world as at 31 January 2006.  The property team manages in
excess of £23 billion of UK and European property assets, making Morley the
largest property fund manager in Europe.

Winners of the high profile Property Week Fund Manager of the Year Award 2004
and the UK Pensions Awards Property Fund Manager of the Year 2005, the team
consists of over 70 investment professionals and manages a range of funds on
behalf of institutional, wholesale and retail clients. Morley has been at the
forefront of innovation in property fund management and has launched eleven
specialist sector based funds with partners, including the Jersey-based Unit
Trusts: Igloo Regeneration Fund, Quercus Healthcare Property, The Junction and
The Mall.

For further information, visit:  www.morleyproperty.com


                                    - ENDS -


For further information:

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

Redwood Consulting:
Paul Haines/Liz D'Oliveira              Tel: [phone]

gcg hudson sandler
Michael Sandler / James Benjamin        Tel: [phone]



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