CAPITAL & REGIONAL PLC - Capital & Regional completes long term leases at two former BHS units

Capital & Regional completes long term leases at two former BHS units

CAPITAL & REGIONAL PLC
(Incorporated in the United Kingdom)
(UK company number 01399411)
LSE share code: CAL JSE share code: CRP
ISIN: GB0001741544
(“Capital & Regional” or “the Company”)


CAPITAL & REGIONAL COMPLETES LONG TERM LEASES AT TWO FORMER BHS UNITS


Capital & Regional (LSE: CAL), the UK focused specialist property REIT, announces that it has exchanged two long term leases
for its former BHS units at The Mall Blackburn and The Mall Walthamstow, bringing new occupiers Wilko and the Gym Group
into the schemes and delivering significant increases in passing rent.

At The Mall Blackburn, Wilko has signed a 10 year lease to take the entire 25,000 sq ft ground floor space that was previously
occupied by BHS, representing the retailer’s first store in Blackburn and delivering a strong uplift in passing rent. This builds on
recent letting momentum with Burger King, Game, Costa Coffee and Krispy Kreme, all opening in the scheme by year end. The
new Wilko store is expected to open in the first half of 2017 following a refurbishment of the unit.

At The Mall Walthamstow, the Gym Group has taken a 20 year lease on the 15,000 sq ft first floor space in the former BHS unit.
The opening of the new 24 hour gym, which is scheduled for mid-year 2017, forms part of the strategy to introduce a broader mix
of tenants and uses at Walthamstow, where the Company is advancing plans for an 86,000 sq ft retail and leisure extension.
Capital & Regional is also in advanced legals with a major food retailer to take 18,000 sq ft of the remaining 25,000 sq ft ground
floor space at the unit, with strong interest from a number of occupiers for the final 7,000 sq ft. The Company expects to
significantly increase the rental income from that paid by BHS through the combined lettings.

There has also been good progress at Maidstone and Redditch in negotiations with major national retailers to take single
occupation of the former BHS units at each of those respective schemes.

James Ryman, Investment Director at Capital & Regional, said:

“These lettings are significant in that they show the rapid progress we are making in re-letting the BHS space, growing income
from previous levels while further improving our tenant mix and leisure offer.

Wilko will significantly strengthen the convenience proposition at Blackburn and the addition of The Gym in Walthamstow forms
a key part of our transformational plans for a location that is emerging as one of London's most vibrant neighbourhoods.”

9 December 2016

JSE sponsor
Java Capital


Notes to editors:
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. GBP 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 six shopping centres in Blackburn, 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 830 retail units and attract c. 1.6 million
shopping visits each week, through its in-house expert property and asset management platform.

For further information see www.capreg.com.

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