Capital & Regional Regulatory News (CAL)

18 March 2016

Capital & Regional plc

("Capital & Regional" or the "Company")

Acquisition of a third property in Hemel Hempstead

Capital & Regional plc, the UK focused specialist property REIT, today announces the £7.8 million acquisition of Fareham House in Hemel Hempstead in an off-market transaction.

The acquisition, which is immediately adjacent to both the Marlowes shopping centre and Edmonds Parade, which were acquired by the Company in February 2016, means that Capital & Regional now has the significant opportunity of consolidating all three assets into a single, dominant town centre scheme. Altogether, the properties provide 340,000 sq ft of retail space across 87 retail units, with 1,200 car parking spaces.

The total acquisition cost of the three properties is £53.8 million, representing a yield of 7.0% on the retail space. The transactions have been funded using existing cash, a small draw-down on the Group's central facility and a non-recourse loan with the Royal Bank of Scotland of £26.9 million. The loan runs for five years with two one year extensions available at the end of each of the first two years. The rate of interest payable on the loan following hedging is expected to be around 3.3%.

Hugh Scott-Barrett, Chief Executive, commented:

"We have worked hard to acquire Fareham House off-market and the transaction represents a considerable success in the opportunity that we now have in Hemel Hempstead, a strong south east commuter town with significant growth potential that has, historically, been under-invested in.

"Together, the three acquisitions we have undertaken provide us with effective control of the town centre retail offer and unlock attractive longer-term prospects for a more comprehensive development and repositioning that fit well with our asset management capabilities."

The Company is also on the afternoon of Monday 21 March 2016 hosting an investor visit to The Mall, Walthamstow, comprising a presentation from senior managers followed by a tour of the centre. No new material trading or financial information will be disclosed and the presentation will be available on the Company's website at www.capreg.com after 14:30 on Monday 21 March 2016.

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About Capital & Regional plc

Capital & Regional is a UK focused specialist property REIT with a strong track record of delivering value enhancing retail and leisure asset management opportunities across a c. £1 billion portfolio of in-town dominant community shopping centres. Capital & Regional is listed on the main market of the London Stock Exchange and has a secondary listing on the Johannesburg Stock Exchange.

Capital & Regional owns seven shopping centres in Blackburn, Camberley, Hemel Hempstead, Luton, Maidstone, Walthamstow and Wood Green. It also has a 20% joint venture interest in the Kingfisher Centre in Redditch and a 50% joint venture in the Buttermarket Centre, Ipswich. Capital & Regional manages these assets, which comprise over 950 retail units and attract over 1.7 million shopping visits each week, through its in-house expert property and asset management platform.

For further information see www.capreg.com.