19 June 2008

Capital & Regional welcomes agreement to sell 
three Mall shopping centres

The Mall Fund has today announced that it has agreed to sell three properties to Carlyle Group for £286m.

The properties are Mall shopping centres in Chester, Epsom and Edgware.  As at the end of March 2008 the three properties were valued at £339.8m. 

The price agreed represents an initial yield of 6.0%. 

The proceeds from the sale, which will complete in early July, will be available to reduce gearing in the fund.

Hugh Scott-Barrett, Chief Executive of Capital & Regional, said "This transaction, together with the capital raising announced earlier today, puts the Mall Fund on a more secure financial footing and will allow us to focus on maximising fund performance through the active management of the asset portfolio." 

- ENDS -

For further information:

Capital & Regional:

Hugh Scott-Barrett, Chief Executive                              Tel: 020 7932 8000

Maitland                                                                         Tel: 020 7379 5151

Martin Leeburn / Emma Burdett 

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 

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