Re Joint Venture

Capital & Regional PLC
18 March 2002



                                                                   18 March 2002



                    CAPITAL & REGIONAL AND PRICOA TO DEVELOP

          SECOND XSCAPE ENTERTAINMENT DESTINATION IN CASTLEFORD, LEEDS

Capital & Regional plc and PRICOA Property Investment Management ("PRICOA"),
today announce that they have completed the purchase of a 20 acre site adjoining
the Freeport leisure factory outlet centre in Castleford, Leeds to develop a
second Xscape destination complex. The site was acquired from Waystone Ltd for a
total consideration of £3.5m.

Xscape, Castleford is confidently expected to follow the enormous success of the
first Xscape entertainment destination which opened in Milton Keynes in June
2000 and attracted over 4.2 million visitors in its first year.

The £57m development in Castleford is a joint venture between Capital & Regional
plc and Hanover Property Unit Trust, which is managed by PRICOA.

The development offers 360,000 sq ft of lettable space and is 66% pre-let. It
will include an indoor real snow ski slope managed by Snozone Limited (a Capital
& Regional subsidiary); a 14 screen multiplex cinema pre-let to Cine UK Limited;
an indoor and outdoor skate park and a 16m high ice climbing wall. A number of
lifestyle retailers, including Ellis Brigham Limited, Legends plc and Silvertrek
Limited, have committed to the scheme together with an array of cafes, bars and
restaurants, including Nandos Chicken Land Limited, ASK Restaurants Limited,
Tootsies Restaurants and JD Wetherspoons plc. The 20 lane bowling alley and pool
bar has been let to Bowlplex plc.

A building contract has been placed with Shepherd Construction for a sum of
£31.2m and construction has already commenced. Completion is expected in Autumn
2003.



PY Gerbeau, Chief Executive of Xscape Ltd said:

" The huge success of Xscape, Milton Keynes, which has brought together a highly
innovative combination of retail and leisure entertainment, has been so
successful that many of our lead tenants have supported us by entering into
pre-commitments for this new centre at Castleford. We plan to produce further
original and exciting entertainment within this scheme to complement the array
of retailers, restaurants and cafes that will be joining us."

Robert Palmer of PRICOA commented:

" This acquisition expands the successful partnership that Hanover has
established with Capital & Regional and Xscape at Milton Keynes and provides the
Trust with another exciting development project that is already substantially
preleased."



-ends-

For further information contact:

Martin Barber, Chief Executive, Capital & Regional plc - 020 7932 8000

PY Gerbeau, Chief Executive, Xscape Ltd - 020 7932 8000

Robert Palmer, Director, PRICOA - 020 7761 3300

Theresa Millar, PREI - 00 1 973 802 7455

Notes to the Editors:


 1. Capital & Regional plc is a co-investing asset manager of retail and leisure
    properties throughout the UK. Property funds under management are currently
    valued at over £1.1 billion.

 2. PRICOA Property Investment Management Ltd is the UK based real estate
    investment arm of Prudential Real Estate Investors (PREI), headquartered in
    Parsippany, New Jersey, USA. PREI, with $11.6 billion of assets as of
    December 31, 2001, provides global real estate investment management
    services to institutional clients in the U.S, Europe, Asia, Latin America
    and is the real estate advisory and investment business of Prudential
    Financial, Inc. Prudential Financial is not affiliated with Prudential plc
    (UK.)

 3. The site, located adjacent to Junction 32 of the M63 motorway is 15 minutes
    east of Leeds. The project is part of the redevelopment of a 334-acre
    Glasshoughton colliery site being carried out by Waystone and the Regional
    Development Agency, Yorkshire Forward and will include a Freeport factory
    outlet centre and over 150 new houses.

 4. Xscape is a Capital & Regional brand.

 5. Xscape's website address is: www.xscape.co.uk




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