Acquisition

Capital & Regional plc
30 July 2004

                                                                    30 July 2004

                           CAPITAL & REGIONAL PLC:

            X-LEISURE FUND BUYS BURFORD'S SHARE OF 02 CENTRE, LONDON


Capital & Regional plc, the co-investing property asset manager, has announced
the completion by the X-Leisure Fund of a 25% share of the highly successful 02
Centre, Finchley Road, London NW3 from Burford.  The acquisition means that the
fund is now the 100% owner of the centre.  The £550 million X-Leisure Fund,
launched in March 2004, is the largest leisure fund in the UK.

The O2 Centre, developed by Burford, opened in 1999 and is one of the UK's most
successful retail and leisure destinations anchored by an 8 screen Vue multiplex
cinema and an 80,000 sq ft Sainsburys supermarket.  The centre currently
attracts more than 6.7 million visitors a year.

PY Gerbeau, CEO of X-Leisure comments "The 02 Centre, valued in excess of £100
million, is a great asset to the X-Leisure Fund.  I am delighted that now we are
100% owners and managers of this leading UK leisure and retail destination we
will be able to apply our skills to this asset to drive performance for our
investors.  I am very excited about 02 Centre's future as we have plans that can
now be implemented for the benefit of consumers, tenants and investors".

The Fund's future plans include not only the addition of more floor space to
satisfy the tenant demand, but also, consistent with its specialist leisure
management skills, the positioning of the centre as a family entertainment and
shopping destination.  The strategy will include introducing additional
activities and attractions which, together with a full programme of consumer-led
events and entertainment supported by marketing and promotional activity, will
attract more visitors to the centre and increase dwell time and the tenant's
trading performance - the "virtuous circle".


                                    - ENDS -


For further information:

Capital & Regional:
Martin Barber, Chief Executive                       Tel:  [phone]
Polly Farrell - X-Leisure                            Tel:  [phone]

Hmark
Sarah Harrison                                       Tel:  [phone]

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


Notes to Editor:

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.

Capital & Regional 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:  www.capreg.com

About X-Leisure
     
•    The £550 million X-Leisure Fund, the largest Leisure Fund in the UK, was 
     launched in March 2004 from the former MWB Leisure Funds and has a life of
     15 years.

•    Capital & Regional's specialist Leisure division, X-Leisure, is the
     property and asset manager, Hermes Investment Management Limited is the 
     Fund Manager

•    PY Gerbeau is CEO of X-Leisure.

•    The X-Leisure Fund owns and manages 17 entertainment and leisure 
     destinations providing 2.9m sq ft of accommodation across the UK attracting 
     more than 45m visitors annually.

•    X-Leisure also owns and manages the award winning Xscape brand and The
     Great Northern Warehouse in Manchester.

•    www.x-leisure.co.uk

•    www.xscape.co.uk


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