New Investors

Capital & Regional plc
06 August 2004




                                                                   6 August 2004



                           CAPITAL & REGIONAL PLC:
                    MALL FUND SECURES 16 NEW INVESTORS

Capital & Regional plc, the co-investing property asset manager, today announces
that The Mall has attracted 16 new investors bringing a total of £60.5m
(inclusive of a 5% premium) into the Fund within the last month

Clients of Scottish Widows Investment Partnership & ING Real Estate Investment
Management have agreed to invest in The Mall Fund, bringing the total number of
investors to 25, sharing a total net asset value in the region of £950m.

The Mall has acquired three new shopping centres since the beginning of 2004
(Bristol, Preston & Gloucester) and now has gross assets of over £1.60bn in 18
shopping centres.  The Mall is the brand name of The Mall Fund, the investment
vehicle established by clients of Morley Fund Management and Capital & Regional
plc in 2002, to own and operate community shopping centres throughout the UK.

During the first half of 2004, investors in The Mall have seen an increase in
the value of their units of over 10%.  This is against a capital return in the
IPD Monthly Index of around half this level (source: Investment Property
Databank June 2004).

The total return to investors over the last 12 months (as reported in the HSBC
Pooled Property Fund Index to 30 June 2004) was 31.2%.

Philip Nell, Fund Manager for The Mall at Morley Fund Management comments: "We
are very pleased to welcome such high profile investors as ING and Scottish
Widows Investment Partnership into The Mall Fund.  They join a growing number of
institutional investors including The Prudential, Friends Provident, Hermes, and
Norwich Union.  The Mall Fund brand is now established at not only a shopper and
retailer level, but also at an investor level.  The diversification benefits of
a £1.6 billion portfolio in 18 shopping centres speak for themselves.  We are
confident that the fund structure of a specialist operator and broad investor
base will continue to deliver out-performance for our clients."

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. It founded the Mall and Junction Limited Partnerships in conjunction
with Morley Fund Management.

Capital & Regional 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 over £1.54bn in 18 shopping centres and has plans to
grow assets to 25/30 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, visit www.themall.co.uk

Morley Fund Management

Morley Fund Management ('Morley') is an independently managed, London based,
asset management business with over £111 billion* under management (as at
31.03.04). It is a wholly owned subsidiary of the Aviva Group and acts as
investment manager to Norwich Union in the UK.

The property team at Morley manages in excess of £12 billion* of UK Property
assets (as at 31.03.04), making Morley one of the largest property fund managers
in the UK. The team consists of 50 investment professionals and manages a range
of funds, including segregated and pooled pensions as well as 2 retail unit
trusts.


* Not including mortgage assets



                                    - ENDS -



For further information:

Capital & Regional:
Martin Barber, Chief Executive             Tel:  [phone]
Ken Ford, Chief Executive The Mall         Tel:  [phone]



Redwood Consulting
Liz D'Oliveira                             Tel:  [phone]



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


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