Acquisition

Capital & Regional PLC
14 February 2003


14 February 2003



               CAPITAL & REGIONAL / PILLAR PROPERTY JOINT VENTURE

            ACQUIRES 90 ACRE SITE FOR GLASGOW'S FIRST SHOPPING PARK



A joint venture between Capital & Regional plc and Pillar Property plc has
completed the acquisition from Glasgow City Council (GCC) of a prominent 90 acre
site east of Glasgow and adjacent to junction 10 of the M8. Conditional
contracts were exchanged in January 2002 and the site has now received all the
necessary planning and highway consents.



The transaction with GCC involved a land swap of this site, known as Auchinlea
Park, with the existing Junction 10 retail park which comprises 90,000 sq ft. In
addition, GCC received a cash payment of around £25m.



Construction of Phase 1 of the scheme, comprising some 350,000 sq ft of open A1
retail and leisure space, will commence in March this year, and create Glasgow's
first shopping park. Completion is due in autumn 2004, when the ultimate value
is projected to be in excess of £140m.



Occupier demand has already been exceptionally strong for this scheme. The joint
venture has already pre-let more than 170,000 sq ft of Phase 1, with a rent roll
of in excess of £4m per annum.  The ultimate rent roll on completion is expected
to be more than £9m per annum.  Phase 1 tenants include Next, Arcadia, Virgin,
Boots, Argos and JJB Sports.



Commenting on the transaction Valentine Beresford, Director of Pillar Property
stated;



"Glasgow Fort Shopping Park will be the city's first shopping park and
represents a major regeneration initiative for the Auchinlea area.  We believe
the quality of the proposed scheme, the strength of the motorway location and
the first class tenant line up sets this scheme apart from its competitors and
we are delighted to be instrumental in bringing it to fruition".



Commenting on the transaction Andrew Lewis-Pratt, Executive Director of Capital
& Regional said:



"We are delighted to have finally obtained all the consents necessary to enable
this exciting and unique project to commence and we look forward to continuing
our successful relationship with Pillar to create Glasgow city's first shopping
park."



Montagu Evans advised the joint venture in respect of its negotiations with GCC.



                                     -ends-








For further information:


Capital & Regional plc

Andrew Lewis-Pratt, Executive Director                                      Tel: [phone]



For further information on C&R, please visit www.capreg.com


Pillar Property plc

Valentine Beresford, Director                                               Tel: [phone]
Mark Stirling


For further information on Pillar, please visit www.pillarproperty.com


Gavin Anderson & Company

Charlotte Stone                                                             Tel: [phone]


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