Acquisition

Capital & Regional plc
10 July 2006


                                                                    10 July 2006


                     CAPITAL & REGIONAL PLC AND GE REAL ESTATE
                      ACQUIRE MANCHESTER ARENA FOR £62 MILLION

Capital & Regional plc and GE Real Estate UK, in a 30:70 joint venture, have
exchanged contracts to acquire the Manchester Arena Mixed Use Complex which
includes the 20,000 seat MEN Arena, for £61.75 million from Anschutz
Entertainment Group ('AEG').

The property, located on an eight acre site in the heart of Manchester City
Centre, comprises 120,000 sq ft of offices, a 1,075 space car park, ancillary
retail and the 20,000 seat MEN Arena.

The Arena plays host to wide variety of music, sporting and comedy events.  The
Complex was completed in 1995 as part of the Manchester Olympic Bid and is now a
well established international venue.  Its versatility has led to its use for
concerts, ice hockey, boxing, Disney shows, exhibitions and blue-chip AGM's.  It
has been nominated International Venue of the Year from 2001-04, and between
2003-05 it has been awarded the title of Busiest Arena Venue in the World.  The
Arena is operated by SMG (UK) Ltd - an experienced operator of arenas and public
venues worldwide.

The Complex incorporates 120,000 sq ft of multi-let offices, of which 91,000 sq
ft is let as a call-centre.   The property provides a good income profile with
88% of the income secured for over eight years and 42% of the income linked to
RPI.

Fredrik Widlund, managing director of business development at GE Real Estate UK,
commented:  "This acquisition offered the opportunity to acquire a prime
mixed-use investment in the heart of Manchester City Centre. We are excited to
be looking at new and interesting opportunities which diversify our portfolio,
especially when we can team up with true specialists, such as Capital & Regional
to manage the asset with a view to extracting growth."

Xavier Pullen, deputy chief executive, Capital & Regional, said:  "We are
delighted to be working with the team at GE on this prime investment in
Manchester where C&R has a long and successful history."

The Senior Debt Facility is being provided by Bank of Scotland Corporate.
Christopher Dee acted on behalf of the joint venture.


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Notes to Editors

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.

Capital & Regional founded the Mall and Junction Funds in conjunction with
Morley Fund Management.  It also 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 see:  www.capreg.com



About GE Real Estate

GE Real Estate (www.gerealestate.com) is a world leader in commercial real
estate capital solutions.  Formed in 1972, the business has more than US$38
billion in core assets with 44 offices located throughout North America, Europe,
Asia, and Australia/New Zealand.  GE Real Estate, backed by its parent company's
AAA rating, offers a broad range of financing, equity and servicing solutions
including: intermediate and long-term mortgage financing, restructuring and
acquisition capital, niche equity investment, joint ventures, capital markets
securitization and placements, and asset management.  As one of the fastest
growing units within GE Commercial Finance, Real Estate has experienced annual
growth of more than 10% for the last ten consecutive years.

GE Commercial Finance (www.gecommercialfinance.com) offers businesses an
extensive array of financial services and products.  With over US$260 billion in
assets and an expertise in the mid-market, GE Commercial Finance provides loans,
operating leases, financing programs and innovative structured capital to help
customers grow.  GE Commercial Finance is a wholly owned subsidiary of the
General Electric Company (NYSE:GE), a diversified services, technology and
manufacturing company with operations worldwide.

General Electric (NYSE: GE) is Imagination at Work - a diversified technology,
media and financial services company focused on solving some of the world's
toughest problems.

About AEG (Anschutz Entertainment Group)

AEG is one of the leading sports and entertainment presenters in the world. A
wholly owned subsidiary of The Anschutz Corporation, it owns or operates some of
the world's best arenas and theatres, numerous sports franchises including the
Lakers (NBA), Los Angeles Kings (NHL) and The David Beckham Academy, and a
collection of companies dedicated to producing, promoting and presenting
world-class live entertainment.

In May 2005, AEG announced that it had joined forces with O2 to help transform
the former Millennium Dome and the surrounding area into the UK's most exciting
and technically advanced music, sport and entertainment destination. It has been
renamed 'The O2 and will open in 2007.

AEG employs more than 3,000 staff in over 45 operating companies worldwide.  Its
international head office is at STAPLES Center, Los Angeles, and its European
headquarters is now based in London.


                                    - ENDS -



For further information:

Capital & Regional:
Xavier Pullen, Deputy Chief Executive           Tel. [phone]

Hudson Sandler
Michael Sandler                                 Tel:  [phone]


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