Retail Development Approval

Capital & Regional plc
10 May 2007

                                                                     10 May 2007

                          CAPITAL & REGIONAL PLC:

               CARDIFF RETAIL DEVELOPMENT GAINS FINAL APPROVALS

Capital & Regional plc, the co-investing property asset manager, today announces
that a major new retail development in Cardiff has received all final approvals
and is to proceed.  The development will create a new retail centre, Capital
Retail Park, alongside a new stadium for Cardiff City Football Club.

Capital Retail Park Partnership, which will develop the 470,000 sq ft retail
park element of the scheme, is a 50/50 joint venture between Capital & Regional
and local developer PMG.

Capital Retail Park Partnership has bought the retail park site from Cardiff
Council for £34.7m.  The Council will put this sum towards the £58m cost of
building the new football stadium.

One end of the retail park terrace is to be anchored by a 132,500 sq ft Costco
warehouse.  The other end has been sold to Asda which will be building a 90,000
sq ft supermarket.  Other lettings on the terrace, including mezzanine space,
are to Marks & Spencer which has pre-let 49,000 sq ft and JJB sports which has
pre-let 47,000 sq ft.

John Gatley of Capital & Regional plc comments: "We are delighted to be a part
of this important development for Cardiff, not only for its Football Club, but
also for all the economic and social benefits that a development of this scale
will bring to the local community.  In adding M&S to the line up of shops at
Capital Retail Park, which currently includes Asda, Costco and JJB Sports, we
are creating a vibrant retail centre for shoppers that complements both the
stadium development and the wider retail offer in Cardiff today."

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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:  www.capreg.com


About PMG

PMG is a commercial property developer with expertise covering the core areas of
retail, office and industrial development.  Site assembly and related planning
issues are further areas of specialisation.  It commenced trading in July 1997
and was capitalised with £1.5m share capital.

For further information see:  www.pmg-plc.com/


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For further information:

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

Redwood Consulting:
Kate Hewson                                   Tel:  [phone]

Maitland
Martin Leeburn                                Tel:  [phone]
Emma Burdett                                  Tel:  [phone]



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