Retail Park Launch

Capital & Regional PLC
18 January 2002

                                                               18 January 2002


                           Capital & Regional plc

        Capital & Regional and Morley Fund Management launch The Junction


Capital & Regional announce the development of the UK's first Retail Park
Brand - 'The Junction'.

Earlier this month, Capital & Regional plc and Morley Fund Management
announced the formation of a Retail Park investment fund.  The fund initially
comprises of 11 retail parks, with a value of £336 million.  Capital &
Regional and Morley believe that by merging their skills and these particular
large scale retail parks, there is a major opportunity to enhance value by
branding and the provision of innovative additional attractions.

Consequently, today they announce the launch of the first ever branded retail
park portfolio in the UK, The Junction.

The Junction will create the first ever branded retail park portfolio,
consisting of category killer stores, combined to create the destination
parks.  The Junction will add exciting attractions to create places that will
encourage customers to stay longer, spend more and visit more frequently.  In
turn, this will result in increasing the turnover for The Junction tenants.


All parks within The Junction portfolio will feature a wide range of customer
benefits including essential amenities and on-site management.  Each park will
offer covered walkways, well considered lighting car park layouts and design -
all adding to the customer experience to ensure repeat visits.


The Junction parks will all benefit from a centrally managed local and
national marketing campaign, which will extend the reach and catchment of each
park, introducing new visitors and creating customer loyalty.


By creating consumer friendly retail environments The Junction will benefit
from a number of non-property revenue streams including sponsorship and
advertising revenue, casual leasing and event promotions.


Located Centrally at each park will be 'The Pod'.


The spectacular and futuristic design will certainly attract the visitors
where inside they will find a number of conveniences and complimentary
retailers, places to meet, eat, drink and relax and places to PLAY!


The contents and design of each 'Pod' will be carefully considered to suit
consumer demand, be sympathetic to the park and local to the environment.  The
Pod will also compliment the other existing major tenants.


'The Pod' will create the point of difference to The Junction parks, as they
will encourage the consumer to remain on site longer, which will then result
in an increase in turnover for The Junction tenants.  The Junction consumer,
once familiar with the concept, the service and attractions offered within the
Pod will become loyal to The Junction.  We believe 'The Pod' will be so
successful that it will become an attraction in its own right and drive
additional footfall through The Junction Park Portfolio!


The Junction's initial portfolio will consist of 11 parks with a value of £336
million nation-wide at the following locations:


West Birmingham

West Glasgow

Hull

East London

Wembley

Aylesbury

Leeds

Sheffield

Oxford

Leicester

Maidstone


The long-term vision for The Junction is to increase the portfolio to 25
branded destination retail parks with a value of £1.2 billion to ensure market
leadership.


Work on the redevelopment of the Junction portfolio has already commenced and
it is anticipated that the first park to receive the Junction treatment will
be Hull. Work is already underway and completion is due in summer 2002


Andrew Lewis-Pratt, Managing Director of Retail Parks & Xscape said; 'The
Junction represents an exciting opportunity to create additional value by
making our retail parks more attractive shopping destinations.  Traditionally
retail parks have failed to respond to consumer demand for an enhanced
environment, convenience services and leisure activity.  Our new approach will
create a national brand with real consumer appeal to support the trading of
our tenants.   This initiative is typical of the innovations we are able to
pursue due to the depth of our management team and retail expertise.'


Mick Wheatley, Fund Manager Retail & Leisure Parks, Morley Fund Management
said: 'Our partnership with C&R in the creation of the Retail Park Fund is
further endorsed by the launch of The Junction as the first ever branded
retail park portfolio.  Our objective is to deliver significantly enhanced
returns to our Client Investor Funds.  C&R's innovative approach and retail
expertise coupled with the highly creative, yet disciplined, Morley Investment
process will enable us to achieve this and to differentiate this retail park
portfolio from our competitors.'


Enquiries:

Andrew Lewis-Pratt, Managing Director of Retail Parks, Capital & Regional
Tel: [phone]


Mick Wheatley, Fund Manager Retail & Leisure Parks ,  Morley Fund Management
Tel: [phone]


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