Retail Park Investment Fund

Capital & Regional PLC
29 November 2001



                                                              29 November 2001

                              CAPITAL & REGIONAL PLC

                   CREATION OF RETAIL PARK INVESTMENT FUND

                         WITH MORLEY FUND MANAGEMENT

Capital & Regional plc ('C & R' or 'the Company') has exchanged contracts with
Morley Fund Management ('Morley') to form a Retail Park Investment Fund.  C &
R and clients of Morley will each initially own 50% of the Fund's equity.

C & R and Morley believe that, by merging their portfolios of large scale
retail parks, there is a major opportunity to enhance values by branding and
the provision of innovative additional attractions.

C & R will be transferring six of its retail parks into the Fund for a cash
consideration of £165m, of which £13.7m is deferred payable on the completion
of development works under way.  Of these proceeds, £85m will be re-invested
in the Fund with the balance being used to reduce Group debt.  Clients of
Morley will be transferring five of their parks into the Fund for £171m.
Completion is expected to take place on 3 January 2002.

All of the assets being transferred into the Fund are retail parks which are,
or are capable of becoming, dominant anchored parks. Morley will be the Fund
Manager and C & R will be the Property and Asset Manager.  Both C & R and
Morley have been granted 10 year management contracts to maximise returns to
investors.

The Fund will be responsible for all development costs associated with the
portfolio.  Royal Bank of Scotland has extended an initial facility of £170m
with further development facilities available.

Martin Barber, Chief Executive of C & R, said 'We are delighted to be joining
with Morley, one of the largest and most innovative fund management groups in
the UK.  This is another major step in implementing our strategy to leverage
our management skills to achieve even higher returns for shareholders.  We
also believe that the scale of the portfolio will enable us to create value
from branding and other non-traditional activities to enhance returns.'

Ian Womack, Head of Property at Morley said 'We are pleased to be working with
C & R on this important new Fund as there is strength and depth in its
management team in this sector.  The next phase, in early 2002, will be to
offer the opportunity to others to participate in the Fund either with stock
or cash.  Our objective is to create a Fund with national coverage which, at
that stage, should have a value in excess of £1 billion.'

Enquiries :

Martin Barber, Chief Executive, Capital & Regional plc
Telephone : [phone]

Ian Womack, Head of Property, Morley Fund Management
Telephone : [phone]

Andrew Hayes/Wendy Baker, Hudson Sandler
Telephone : [phone]

Further Information :

1.      Retail Park Values
                                                                    Net Value

Morley Properties

Leeds             Tulip Retail Park

Leicester         St George Retail Park

Maidstone         South Aylesford Retail Park

Oxford            Templars Retail Park

Sheffield         Drakehouse Retail Park
                                                                   £171,050,000

Capital & Regional Properties

Aylesbury         Cambridge Close Retail Park

Beckton           Beckton Retail Park

Hull              St Andrews Quay

Renfrew           Renfrew Retail Park

Oldbury           Broadwell Industrial Estate and Land

Wembley           Wembley Retail Park
                                                                   £165,200,000


TOTAL                                                              £336,250,000



2.      The value of the C & R Retail Parks being transferred as at 24 June
2001 was £150m and the historical cost was £111m.   A further £18m of
expenditure has either been incurred on these Retail Parks since then or is
committed to be incurred as part of the agreement.



3.      Net rental income of the C & R Retail Parks being transferred for the
year ended 25 December 2000 was approximately £7m.



4.      Morley was advised by Edgerley Simpson Howe & Partners, King Sturge
advised C & R.