Securitisation

Capital & Regional plc
02 October 2006



                                                                  2 October 2006



                            CAPITAL & REGIONAL PLC:
  The Mall Fund successfully CLOSES its £375m tap commercial mortgage backed
                               securities issue


Further to the announcement on 13 September 2006, the Mall Fund announces that
it has closed its £375m tap issue of the Mall Funding Plc due April 2014. The
issue was priced at 18 basis points over 3 months Libor. The tap issue was made
at 99.9249 per cent of par, giving an effective rate of 19 basis points on the
gross proceeds of the tap issue.

Including the original issue of £1,060m, the total issue of mortgage backed
securities is now £1,435m.  Of this, £1,260m has been fixed at a rate of 5.01%,
with the balance of £175m floating at Libor plus 18 basis points.


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 Mall

The Mall is the leading owner and operator of community shopping centres in the
UK.  The Mall has assets of £3 billion in 23 shopping centres, establishing The
Mall as the UK's community shopping centre brand.  The Mall Fund is a specialist
property fund managed by Capital & Regional and Morley Fund Management.

For further information, visit:  www.themall.co.uk


About Morley Fund Management

Morley Fund Management ('Morley') is a London based, asset management business
with over £158.78 billion under management (as at 31 July 2006).  The property
team manages in excess of £26 billion of UK Property assets, making Morley one
of the largest property fund managers in the UK.  The team consists of 60
investment professionals and manages a range of funds on behalf of
institutional, pension and retail clients.  Morley has been at the forefront of
innovation in property fund management and has launched eleven specialist sector
based funds with partners, including the Jersey-based Unit Trusts:  Ashtenne
Industrial Fund, Quercus Healthcare Property, The Junction and The Mall.

For further information, visit:  www.morleyproperty.com


                                    - ENDS -


For further information:

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

Hudson Sandler
Michael Sandler                              Tel:  [phone]





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