Disposal

Capital & Regional plc
12 September 2006


                                                               12 September 2006



                              CAPITAL & REGIONAL PLC:
          THE JUNCTION REBALANCES ITS PORTFOLIO WITH RETAIL PARK DISPOSALS


Capital & Regional plc, the co-investing property asset manager, today announces
that leading retail park owner and operator, The Junction, has recently
completed the sale of four of its retail parks for a combined total of
£159.8million.

Allied Irish Bank Private Banking represented by Cheval has purchased the
211,652 sq ft Euro Retail Park in Ipswich for £66.34million, reflecting a net
initial yield of 4.44% and an equivalent yield of 5.38%.  Euro Retail Park is
let to Carpetright, Halfords, Hughes, MFI, JJB Sports, Allied Carpets and
Dreams.  Burger King and Frankie & Benny's also operate from the park.

Glanmore Property Fund has purchased Beckton Retail Park for £49.7million,
reflecting a net initial yield of 5.09% and an equivalent yield of 5.84%.
Retailers on the 192,128 sq ft Beckton Retail Park include Big W, Matalan, JJB
Sports, Land of Leather and Dreams.

Tulip Retail Park in Leeds has been purchased by the BBC Pension Fund for
£16million, reflecting a net initial yield of 4.19% and an equivalent yield of
7.32%.

Propinvest Holdings Ltd has purchased Renfrew Retail Park, Renfrew for
£27.75million reflecting a net initial yield of 6.27% and an equivalent yield of
6.27%.  The 243,155 sq ft retail park is let to retailers including Allied
Carpets, Harveys, MFI, Land of Leather, Matalan and JJB Sports.

Commenting on the transactions, Andy Lewis-Pratt, Chief Executive of The
Junction said:  "The Junction is rebalancing its portfolio to significantly
increase the Open A1 content of its property holdings.  Several major
refurbishments and redevelopments are currently ongoing across our portfolio and
we are now in the market to acquire new product."

The Junction owns and operates a £1.35 billion destination retail park
portfolio.  Capital & Regional and Morley Fund Management set up The Junction in
2002.


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


Morley Fund Management

Firms within the Morley group of companies manage £157bn from offices around the
world as at 30 June 2006.  The property team manages in excess of £23bn of UK
and European property assets, making Morley the largest property fund manager in
Europe.

Awards 2006
     
•    2006, Property Fund Manager of the Year, Pensions Management Awards
•    2006, Property Fund Manager of the Year, Property Week Awards
•    2006, Outstanding Company of the Year Award, CEE Real Estate Quality Awards
•    2006, Investor of the Year Award, CEE Real Estate Quality Awards

The property team consists of 70 investment professionals and manages a range of
funds on behalf of institutional, pension and retail clients.

For further information, visit:  www.morleyproperty.com


                                    - ENDS -

For further information:

Capital & Regional:
William Sunnucks, Group Finance Director                     Tel.  [phone]

Redwood Consulting:
Kate Hewson/Pia Choudhury                                    Tel:  [phone]

Hudson Sandler
Michael Sandler                                              Tel:  [phone]


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