Sale of Star City

Capital & Regional plc 15 December 2006 CAPITAL & REGIONAL PLC: X-LEISURE SELLS STAR CITY BIRMINGHAM Capital & Regional plc, the co-investing property asset manager, today announces that the X-Leisure Fund, the largest owner of leisure real estate in the UK, has exchanged contracts unconditionally to sell Star City in Birmingham to REIT Asset Management for £85.5m. Completion is set for 18 January 2007. Star City comprises in excess of 390,000 sq ft and is home to the UK's largest multiplex cinema, let to Vue, and Europe's largest casino, let to Stanley Casino. There is also a 24-lane bowling alley and numerous restaurants and bars. PY Gerbeau, Chief Executive of X-Leisure, commented: "Our team has worked hard to transform Star City into a regional leisure destination with a family focus with footfall now in excess of 4 million visitors a year. We are selling Star City in a strong market and the capital, together with the management time, released by the sale will be profitably reinvested into a range of exciting new projects that will help us maintain the outperformance of the fund." 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 X-Leisure Fund X-Leisure is the UK's largest leisure fund, with 17 major leisure destinations around the UK including Brighton Marina, 02 Centre London and West India Quay, London Docklands. The X-Leisure Fund currently has around £880 million property assets and equity of £440 million. About Hermes Real Estate Hermes Real Estate offers property investment through segregated and pooled vehicles. We operate an integrated portfolio management and research-based approach using a philosophy of targeting high quality properties which are well located and highly competitive in their local marketplaces. Hermes operates across all the primary markets of retail, office and the industrial sectors. The investment process uses top down portfolio and bottom up property asset models to develop specific investment strategies for clients to maximise their returns. In each of the major markets Hermes has specialist investment managers with specific relevant expertise and market knowledge. This approach ensures that the performance of each portfolio benefits from the input and market insights from sector specialists not just the central fund manager. Hermes Real Estate is one of the largest real estate managers in the UK, with c. £11 billion of gross assets under management (at 30 September 2006). - ENDS - For further information: Capital & Regional: Martin Barber, Chief Executive Tel: 020 7932 8101 Redwood Consulting: Paul Haines / Debbie Cracknell Tel: 020 7828 5553 REIT Asset Management Kevin McGrath Tel: 020 7499 2244 This information is provided by RNS The company news service from the London Stock Exchange
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