Property Planning Application

Capital & Regional plc
07 October 2005


                                                                  7 October 2005


                              CAPITAL & REGIONAL PLC:
                      THE MALL PROPOSES CHESTER DEVELOPMENT


Capital & Regional plc today announces that The Mall, its shopping centre fund
managed jointly with Morley Fund Management, has submitted a planning
application to Chester City Council for a £24m, 130,000 sq ft (12,000 sq m)
retail extension to The Mall Chester.

The new scheme will be located on the opposite side of Pepper Street from The
Mall Chester and connected by a glass footbridge.  The extension will create
over 130,000 sq ft of new retail and catering floor space and will have full
height glass elevation onto Pepper Street, whilst retaining the frontage of the
listed building 'The Temple'.

The extension will create up to eight retail units and an anchor store and when
complete The Mall Chester will total some 355,000 sq ft.  The new shops will
range in size from 2,000 to 10,000 sq ft with space for a 75,000 sq ft anchor
store.  The configuration of the units will be extremely flexible to provide a
range of opportunities for both local and national retailers.  There will also
be additional space for two or three new bars or restaurants on the ground
floor.

Ken Ford, Chief Executive of The Mall, comments:

"There are limited opportunities for new retail development in central Chester
and we are delighted to be able to extend our very successful 'The Mall Chester'
with these proposals.  They will help meet the high level of demand for modern,
flexible retail space in the City and consolidate The Mall's position as central
Chester's principle retail venue."


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:

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

Redwood Consulting:
Paul Haines                                                  Tel: [phone]

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


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