Statement re The Mall Fund

Capital & Regional plc
23 March 2004

                                                                   23 March 2004


                              CAPITAL & REGIONAL PLC:

           THE MALL OUTPERFORMS THE IPD ANNUAL SHOPPING CENTRE SERIES

Capital & Regional plc, the co-investing property asset manager, today announces
that The Mall Fund ("The Mall"), the UK's leading investor and operator of
community shopping centres, has returned 33.5% to investors during 2003.  The
Fund returned 20.1% at property-level and has outperformed the IPD Annual
Shopping Centre Series by 4.9% over the year.

The Mall achieved a total ungeared return at the property level of 20.1% in 2003
(2002: 14.7%) compared with the IPD Annual Shopping Centre Series of 15.2%
(2002: 12.1%).  This translates to a total return to investors (after fees and
expenses) of 33.5% (2002: 21.6% for the 10 months since fund launch in March
2002).

In addition, of the 233 Funds in the IPD Annual Index, The Mall featured in the
top 3% for three areas:  total return, capital growth and net investment, being
ranked eighth in the overall property funds' universe.

The annualised total return to investors since the launch of The Mall in March
2002 is 30.3% pa.

Ken Ford, Chief Executive of The Mall comments:

"To have significantly outperformed both the IPD Annual Index and specifically
its Shopping Centre Series for the last two years is a great credit to the whole
team at The Mall. Investors benefit from our investment focus on community malls
and our direct revenue based management approach. In addition, our locally based
@Mall teams are proving to be very successful at developing relationships with
our shoppers and local communities, essential to improve continually the
popularity of our Malls. By so doing, we work with our retailers to improve
their business in our properties and hence our own returns. We're constantly
looking at opportunities to both further enhance the shopping experience for our
shoppers and to expand our portfolio across the UK."

Philip Nell, fund manager for The Mall at Morley Fund Management says:

"We invested almost £400 million in new malls in 2003 seeking out key
acquisitions such as Castle Mall, Norwich which puts us in the top 3% for net
expenditure in the IPD Annual Index. Our clients have benefited greatly from our
ability to generate high returns, and this proactive acquisition strategy,
combined with our focused business management approach should continue to drive
out-performance for 2004 and beyond."

Institutional investors in The Mall include Hermes Property Asset Management,
ISIS Property, Norwich Union and The Prudential.


                                    - ENDS -

For further information:

Capital & Regional plc
Martin Barber, Chief Executive, Capital & Regional         Tel:  [phone]
Ken Ford, Chief Executive, The Mall                        Tel:  [phone]
William Sunnucks, Group Finance Director                   Tel:  [phone]

Redwood Consulting
Liz D'Oliveira / Paul Haines                               Tel:  [phone]

Hudson Sandler
Andrew Hayes / James Benjamin                              Tel:  [phone]

Notes to Editors:

About Capital & Regional plc

Capital & Regional is the co-investing asset manager which founded the Mall and
Junction Limited Partnerships in conjunction with Morley Fund Management.  Its
shares are quoted on the London Stock Exchange, and in addition to its
management contract with and co-investment in the Mall and Junction funds, it
runs the three X-Leisure funds and has a number of other joint ventures and
developments.  For further information:
www.capreg.com

About The Mall

The Mall is the brand name of The Mall Fund, established by Morley Fund
Management and Capital & Regional plc to own and operate community shopping
centres throughout the UK. The Mall has assets of over £1.26bn in 15 shopping
centres and has plans to grow assets to £2bn in up to 30 locations, establishing
The Mall as the UK's Community Shopping Centre brand.

For further information, visit:

www.themall.co.uk

Morley Fund Management

Morley Fund Management ('Morley') is an independently managed, London based,
asset management business with over £111 billion* under management (as at
31.12.03). It is a wholly owned subsidiary of the Aviva Group and acts as
investment manager to Norwich Union in the UK.

The property team at Morley manages in excess of £12 billion* of UK Property
assets (as at 31.12.03), making Morley one of the largest property fund managers
in the UK. The team consists of 50 investment professionals and manages a range
of funds, including segregated and pooled pensions as well as 2 retail unit
trusts.

*Not including mortgage assets.


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