Planning application

Capital & Regional plc
02 August 2005




                                                                   2 August 2005


                          CAPITAL & REGIONAL PLC:
                THE MALL PROPOSES £45m BLACKBURN DEVELOPMENT


Capital & Regional plc, the co-investing property asset manager, today announces
that The Mall Fund has submitted a planning application to Blackburn with Darwen
Borough Council for a £45m, 104,000 sq ft retail extension to The Mall
Blackburn.  As part of The Mall's drive to enhance and improve the shopping
centre, units facing Lord Square, Church Street and Ainsworth Street will be
replaced with a modern extension, which will provide over 20 new stores and over
300 new car parking spaces.


The new scheme creates over 100,000 sq ft of new retail floor space, and once
completed The Mall Blackburn will total some 639,000 sq ft.  20 new shops are
proposed for the main upper ground level with access from extended malls leading
to a new anchor store around a 3-storey glazed atrium.  The new shops will range
in size from 1,000 to 43,000 sq ft and configuration is extremely flexible to
provide a range of opportunities for both local and national retailers.


There is also additional space for one or two new large retailers on the lower
ground floor, accessed from both the new atrium within the shopping centre as
well as having direct access from Church Street and Ainsworth Street.  There is
also space for up to 4 new bars or restaurants in the remainder of the lower
ground floor, which also fronts onto Church Street.


The development will also include the refurbishment of the existing shopping
centre to provide new Mall branded toilets, 'Ask Me' Point, What's On boards,
Mall seating and Mall TV.


Ken Ford, Chief Executive of The Mall, comments:

"This is a very exciting time for Blackburn - we have a long-term commitment to
the town and are very pleased to announce our plans to enhance and expand retail
facilities at The Mall Blackburn for our customers.  We have been working
extremely closely with the Council over many months and we believe our plans are
complementary to the emerging Blackburn Masterplan which is set to revitalise
the town centre and ensure Blackburn's status as one of the key locations for
business, shopping and leisure in the North West.


"Our development will provide a dramatic improvement to the existing town
centre, providing opportunities for new, large retailers and cafe/bar operators
who will significantly boost The Mall's retail mix and bring increased life and
vitality to Church Street and Ainsworth Street."


Kate Hollern, Leader of Blackburn with Darwen Borough Council, comments:

"We welcome these proposals from The Mall.  Blackburn town centre is booming.
These next few years are going to witness significant improvements to both
Blackburn and Darwen, not just to the retail and leisure facilities on offer,
but also to the infrastructure and community as a whole.  The council took a
longer term position on Blackburn town centre.  The excellent plans announced
today, which are integral to the on-going master planning, show just how
important it was not to opt for an easier short-term plan."


Subject to receiving approval for these proposals, The Mall hopes to commence
construction in Spring/Summer 2006 and have the extension open for trading in
Spring 2008.

                                    - 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 see 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 £2.3 billion in 22 shopping centres and has plans to
grow assets to 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 see www.themall.co.uk



                                    - ENDS -



For further information:

The Mall:
Ken Ford, Chief Executive The Mall                   Tel. [phone]


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

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






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