Joint Venture

Capital & Regional PLC
03 June 2003



                                                                     3 June 2003



               CAPITAL & REGIONAL PLC / AWG PLC JOINT VENTURE

           GREAT NORTHERN LEISURE AND RETAIL COMPLEX, MANCHESTER


Capital & Regional plc, the specialist co-investing property asset manager,
announces that it has on 30 May 2003 entered into a 50:50 joint venture with AWG
Plc in respect of the Great Northern leisure and commercial development in
central Manchester.  Capital & Regional has invested £5m into the joint venture
and will also manage the property which is valued at £72.5m.  Senior debt has
been provided by the Bank of Scotland.


The scheme lies at the heart of Manchester's city centre leisure, pubs and
conference area in a substantial island block of some 12 acres bounded by Peters
Street, Deansgate and Great Bridgewater Street, adjacent to the GMEX complex and
Metro station.


Great Northern is a Grade II listed Victorian warehouse providing a mix of pubs,
offices, leisure and retail accommodation, together with a new cinema building
and an open public square.  The scheme provides a total of 34,528m2 (371,657
ft2), together with a 1,234 space car park.  The central location provides a
wide range of opportunities for improving or varying the leisure offer.


The scheme is partly let and generates current net income of £4.8m per annum.
AMC occupies approximately 75,000 ft2 and NCP operates the car park.  There are
a number of smaller tenants in occupation along the Deansgate frontage and
around the arena.  The remaining space offers significant opportunities to
increase income.


Commenting on the transaction Tony Donnelly of AWG Plc said "We believe that
Capital & Regional has the retail and leisure expertise to get the right tenant
mix and to allow the scheme to maximise its potential.


Commenting on the transaction, Martin Barber, Chief Executive of Capital &
Regional said:  "We are very pleased that AWG has chosen us as their partner.
We believe this represents an opportunity to transform the complex into a major
leisure destination for Manchester and the north west".




                                    - ENDS -



For further information:

Capital & Regional plc

Martin Barber                                              Tel:  [phone]



AWG Plc

Mike Keohane                                               Tel:  [phone]



Hudson Sandler

Michael Sandler / Wendy Baker                              Tel:  [phone]


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