3rd Quarter Report

Capital & Regional plc
26 November 2004

                                                                26 November 2004

                            CAPITAL & REGIONAL PLC:

                     THE MALL FUND THIRD QUARTER RESULTS

Capital & Regional plc, the co-investing property asset manager, today announces
that The Mall Fund earned a total return of 5.75% for investors in the third
quarter of 2004.

The Fund has seen a rise of 15.9% in net asset value in the first 9 months of
2004 and has provided a total return to investors over the last 12 months of
32.1%.

The Mall continues to expand its portfolio across the UK and in August 2004
purchased three shopping centres from clients of REIT Asset Management - located
in Blackburn, Middlesbrough and Maidstone - for £378.5 million.  The Mall now
owns 21 shopping centres bringing total assets to just over £2 billion and more
than 7m sq ft of retail floor space.  More than 3,750,000 customers are welcomed
through its doors every week.

The Mall is the brand name of The Mall Fund, the investment vehicle established
by clients of Morley Fund Management and Capital & Regional plc in 2002.

Philip Nell, Fund Manager for The Mall at Morley Fund Management comments "The
third quarter of 2004 has, once again, been a very strong period of performance
for The Mall Fund.  Not only have we acquired a further £380 million of
property, but we have also succeeded in our aim of delivering significant
out-performance to our investors.  The fund now has 27 investors."

Institutional investors in The Mall include Hermes Property Asset Management,
Foreign & Colonial (ISIS), Norwich Union Life & Pensions, The Prudential, ING
Real Estate, Scottish Widows Investment Partnership and Arlington Property
Investors.

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.  It 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 now runs the X-Leisure Fund and has a number of
other joint ventures and developments.

For further information visit:  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 over £2bn in 21 shopping centres and has plans to
grow assets to 25/30 centres, establishing The Mall as the UK's Community
Shopping Centre brand.  Capital & Regional and Morley Fund Management set up The
Mall Fund in 2002.

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 £118 billion* under management (as at
30.09.04).  It is a wholly owned subsidiary of the Aviva Group and acts as
investment manager for the Norwich Union range of funds in the UK.

The property team at Morley manages in excess of £14.2 billion of UK Property
assets (as at 30.09.04), 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, including segregated and pooled pensions as well as 2 retail unit
trusts.

*Not including mortgage assets

                                    - ENDS -


For further information:

Capital & Regional:
Martin Barber, Chief Executive                           Tel. [phone]
William Sunnucks, Group Finance Director                 Tel. [phone]

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

Hudson Sandler
Michael Sandler / James Benjamin                         Tel:  [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange        BIBDBSGDGGSU