Acquisition

Capital & Regional plc
05 July 2006

                                                                     5 July 2006



                           CAPITAL & REGIONAL PLC

                ACQUISITION OF GERMAN PORTFOLIO FOR €214 MILLION

Capital & Regional plc, the co-investing property asset manager, today announces
the acquisition of a €214m retail property portfolio, bringing the gross value
of its German assets to c. €450m.

The portfolio, which is being acquired from a private individual, comprises 22
mainly out of town big box retail properties (totalling 134,000 sq metres) and a
substantial retail distribution facility (52,000 sq metres).  The portfolio also
includes 16 hectares (40 acres) of retail and commercial development land.  44%
of the portfolio is let to the Metro Group, one of the largest retailers in
Europe.  The net income is estimated at €13.6m giving a net initial yield on the
portfolio of 6.3%.  Excluding the non income producing land the net initial
yield is 6.8%.

Following completion later this year, it is intended that the majority of the
properties will be included within the Hahn joint venture (90% C&R / 10% Hahn)
and the remainder will be redeveloped and sold over the medium term.  The
portfolio will enhance the earnings of the C&R group during the first full year
after completion.

ABN Amro's London branch is providing the senior debt on this new acquisition.

Xavier Pullen, Deputy Chief Executive of Capital & Regional plc, said  "Over the
past two years we have established a very good working relationship with our
partners, the Hahn Group.  Our first investment was made last year and we
continue to look at further opportunities to add to our platform".

                                    - ends -

For further information:
Capital & Regional
Xavier Pullen, Deputy Chief Executive                       Tel:  [phone]
William Sunnucks, Group Finance Director                    Tel:  [phone]

Hudson Sandler
Michael Sandler                                             Tel:  [phone]


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