New let for X-Leisure

Capital & Regional plc
24 August 2006


                                                                  24 August 2006

                         CAPITAL & REGIONAL PLC:
              HABITAT JOINS LINE UP AT X-LEISURE'S O2 CENTRE


Capital & Regional plc, the co-investing property asset manager, today announces
that X-Leisure has let 11,500 sq ft to the UK's leading furniture retailer
Habitat.  The store is expected to open later this year.

Habitat is relocating from its existing unit 300 yards away on the Finchley
Road.  X-Leisure had created the large store through a reconfiguration of space
previously occupied by Pizza Hut and Old Orleans from whom surrenders were
taken.

The O2 Centre is a pre-eminent family destination with a comprehensive retail
and leisure offer including Sainsbury's, Homebase, Books etc, Starbucks, Vue
Cinema, Esporta & Gymboree Play and Music.  Restaurants and bars located at the
O2 Centre compliment this family-friendly mix, comprising Nandos, Walkabout,
China Red, Yo Sushi, Zucatto, Cumin, Fine Burger & Wetherspoons.

PY Gerbeau, Chief Executive of X-Leisure comments:  "Habitat is a fantastic
addition to the tenant mix at the O2 Centre and another success in our strategy
to add vibrancy and diversity to our retail offer.  The deal underlines the O2
Centre as one of the UK's premier family retail and entertainments destinations
in the UK.


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 X-Leisure

X-Leisure is the UK's fastest growing premier leisure brand, with 23 major
leisure destinations around the UK including the award-winning Xscape
attractions at Milton Keynes, Castleford Leeds, and the new Xscape Braehead
Glasgow.  Other prestigious destinations within the portfolio include Brighton
Marina, 02 Centre London and West India Quay, London Docklands.

With a passion for providing the very best and most innovative family leisure
and entertainment attractions, they are behind the UK's largest indoor real
snowslopes (Milton Keynes, Castleford Leeds and Braehead).  More than 45 million
people visited
X-Leisure attractions last year enjoying a wide range of facilities from
bowling, cinema and casinos to waterparks and extreme sports.

For further information see:  http://www.x-leisure.co.uk/


                                    - ENDS -



For further information:

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

Redwood Consulting:
Paul Haines/Clare Duffy/Debbie Cracknell                   Tel:  [phone]



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