Joint Acquisition

Capital & Regional PLC
8 January 2001




8th January 2001

      CAPITAL & REGIONAL AND HERMES PROPERTY UNIT TRUST JOINTLY ACQUIRE       
                   STRATFORD RETAIL PARK FOR £35.5 MILLION                    
                      
Capital & Regional plc, the specialist retail and leisure property investment
company and Hermes Property Unit Trust, today announce that they have acquired
in equal partnership the Maybird Centre Retail Park and adjoining Regal Road
Industrial Estate in Stratford-upon-Avon for £35.5 million.

Capital & Regional is financing its partnership interest partly by debt from
Fortis Bank, with the balance from existing resources.

The Maybird Centre is the premier retail park in Stratford-upon-Avon and is
located half a mile north west of the main shopping area, fronting the A3400
Birmingham Road. The nearest centres are Birmingham (26 miles), Banbury (21
miles) and Leamington Spa (12 miles).

The retail park, which was originally developed in the late 1980's, has the
benefit of open A1 planning consent and covers approximately 16 acres. The
existing retail element comprises 150,000 sq ft and is fully let to tenants
including B&Q, Boots, JJB Sports and Matalan. Upon acquisition, the passing
rental income is £1.74 million per annum.

The Regal Road Industrial Estate adjoins the property and extends to
approximately 7 acres of mixed office, industrial and warehousing, with the
opportunity to extend the adjoining retail. The passing rental income is
£369,000 per annum.

Commenting on the acquisition, Andrew Lewis-Pratt, Managing Director of Retail
Parks said:

'This partnership provides a rare opportunity to expand our retail park
portfolio by the addition of a scheme exceeding 150,000 sq ft, with the
possibility of extensions to meet retailer demand. We welcome the chance to
work alongside Hermes to maximise the potential for this prime retail park.'

Richard Harrold, Head of Hermes Property Asset Management, commented:

'We are looking forward to working with Capital & Regional, who have a
specialised sector specific team.'
-ends-

For further information please contact:
Martin Barber, Chief Executive, Capital & Regional           0207 932 8000
Andrew Lewis-Pratt, Managing Director, Retail Parks, Capital & Regional 
                                                             0207 932 8000
Lynda Coral, Financial Director, Capital & Regional          0207 932 8000
Sarah Carrell, Corporate Communications, Capital & Regional  0207 932 8000
Richard Harrold, Hermes Property Asset Management            0207 702 0888
Debbie Cracknell, Redwood PR                  0207 494 0303 or 0860 658288

Note:
To the extent that property investments are deemed to be investments as
defined under the Financial Services Act.  These investments are managed by
Hermes Investment Management Ltd, which is authorised by IMRO for the conduct
of such business.

Capital & Regional's corporate website is www.capreg.com