Disposal

Capital & Regional PLC
23 October 2000


            CAPITAL & REGIONAL ANNOUNCES THAT ESPORTA HAS ACQUIRED            
                  THE HEALTH CLUB AT XSCAPE IN MILTON KEYNES                  
                                                                              
                 EXISTING SNOZONE MANAGEMENT TEAM TO CONTINUE                 
                           OPERATING THE SKI SLOPE                            

Capital & Regional plc, the specialist retail and leisure property company and
client funds of PRICOA Property Investment Management, the joint owners of
Xscape in Milton Keynes, today announce that Esporta plc has acquired the
health club, previously operated by Healthland Partnership.  Esporta is a
leading operator of health clubs at the premium end of the market.

The Snozone at Xscape, which was also previously operated by Healthland
Partnership will continue to operate through the existing management team,
under the control of Capital & Regional.  

Healthland Partnership is a joint venture that included Healthland
International Limited, which is now in administrative receivership.  

Andrew Lewis-Pratt, Managing Director of Retail Parks and Xscape at Capital &
Regional commented: 

'We are pleased to announce that Esporta is taking over ownership of the
health club, recognising the successful operation and high quality facility at
Xscape which will fit well with the premium Esporta brand.  The Snozone will
continue to be operated by the existing strong management team, supported by
Capital & Regional's head office.  

'Even with the Snozone opening only two weeks ago, Xscape has already
attracted over one and a half million visitors since opening in July, and we
will continue to provide the consumer with a high level of service in this
unique entertainment and retail centre.'

Patrick Henchoz, Managing Director of Esporta commented: 

'The acquisition of this site allows Esporta to continue its rapid expansion. 
The extensive facilities are ideally suited to our Company objective of
providing premium health club facilities for the family market.  With two new
Esporta clubs opening this month at Lichfield and Enfield, this further
addition to our estate moves us even closer to achieving our target of 46
clubs by the end of 2002.'
                                                                              

For further information please contact:

Capital & Regional plc:
Andrew Lewis-Pratt, Managing Director of Retail Parks and Xscape
0207 932 8000
Sarah Carrell, Head of Corporate Communications
0207 932 8000

Esporta plc:
Patrick Henchoz, Managing Director
0118 9123503

Note to editors:

Xscape in Milton Keynes is a joint venture between Capital & Regional plc and
client funds of PRICOA Prerty Investment Management.  Xscape is the 'ultimate
in entertainment', featuring the Snozone which is a 'real snow' ski slope; a
16 screen CINEWORLD multiplex cinema; 'City Limits' Entertainment Centre;
which includes 24 ten-pin bowling lanes; health club; bars and restaurants;
indoor rock climbing and a range of unique urban and lifestyle retailers.

Capital & Regional plc is a specialist property company owning some of the
most exciting and distinctive retail and leisure properties throughout the UK.
The current portfolio value is £980m totalling over seven million sq ft.

PRICOA Property Investment Management Ltd is a UK based real estate fund
management company and a wholly owned subsidiary of The Prudential Insurance
Company of America.

Esporta plc is one of Europe's fastest growing and most successful health club
groups.  Prior to this acquisition, the Company had over 130,000 members at 27
clubs, firmly establishing it at the premium end of the market.  Esporta plc
was floated on the London Stock Exchange in February 2000.