Interim Management Statement

5 May 2010

LIBERTY INTERNATIONAL PLC

INTERIM MANAGEMENT STATEMENT

FOR THE PERIOD FROM 1 JANUARY 2010 TO 5 MAY 2010

Liberty International PLC today announces its interim management statement for the period from 1 January 2010 to 5 May 2010:

Patrick Burgess, Chairman of Liberty International, commented:

"We are pleased that the UK retail market has stabilised. Capital Shopping Centres' occupancy has been maintained at 98 per cent. We have seen a much lower level of retailer failures than the first quarter of 2009. With the pipeline of new shopping centres sharply curtailed by recent economic conditions, prospects for the performance of CSC's existing assets are encouraging. In the case of Capital & Counties, central London has continued to perform strongly with Covent Garden recording continuing increases in footfall.

The demerger announced on 9 March is now largely complete and we expect the two companies to start to trade separately on 10 May. We believe that Capital Shopping Centres and Capital & Counties are well positioned as stand-alone businesses to execute their own significant strategic plans and deliver strong shareholder returns over time. "

A copy of this press release is available for download from our website at www.liberty-international.co.uk.

Enquiries:

Highlights of the period

·; Announcement of proposed separation of Liberty International into a prime UK regional shopping centre REIT, Capital Shopping Centres (CSC), and a central London focused, non-REIT property company, Capital & Counties (Capco), by way of a demerger of Capco

·; Demerger approved at the EGM on 7 April, separate trading expected to commence 10 May on the London Stock Exchange (LSE) (Capco on a "when issued" basis) and on the JSE Limited (JSE)

·; Occupancy of Capital Shopping Centres' established centres maintained at 97.7 per cent at 31 March 2010 (31 December 2009 - 97.8 per cent) with 43 new lettings in the first quarter

·; Net external debt of £3.3 billion at 31 March 2010 (CSC £2.8 billion, Capco £0.5 billion) (31 December 2009 £3.2 billion) with pro forma debt to assets based on 31 December 2009 property valuations for CSC of 56 per cent and Capco of 38 per cent

·; £525 million, seven year refinancing of debt secured on Lakeside, Thurrock concluded in January

·; St Andrew's Way mall, the approximately 400,000 sq. ft. extension to Eldon Square, Newcastle, opened fully let in February with an immediate positive impact on the Centre's footfall and bringing a number of new retailers to the city

The demerger

The separation of Liberty International PLC into two strong and focused businesses, Capital Shopping Centres Group PLC (CSC) and Capital & Counties Properties PLC (Capco), is expected to become unconditional this week followed by the commencement of trading in the new shares on Monday 10 May on the LSE (Capco on a "when issued" basis) and on the JSE. This week's confirmation by the Court of Liberty International's reduction of capital marks another significant step towards completion of the demerger process which positions both CSC and Capco to execute their own significant strategic plans and to deliver strong shareholder returns over time.

After a week of trading on a "when issued" basis, Capco ordinary shares are expected to be admitted to trading on the LSE on Monday 17 May. The LSE and JSE codes for CSC will be CSCG and CSO respectively and those for Capco will be CAPC and CCO respectively.

Financing

On 31 March 2010 the Group's net external debt was £3.3 billion, with cash of £395 million (31 December 2009 £3.2 billion and £583 million). Based on 31 December 2009 asset values, the 31 March 2010 pro forma debt to assets ratio was 52 per cent (CSC 56 per cent, Capco 38 per cent) (31 December 2009 51 per cent). At 31 March 2010 the weighted average debt maturity was 5.7 years (CSC 6.1 years, Capco 3.7 years) (31 December 2009 5.1 years) and the weighted average cost of gross debt was 5.7 per cent (CSC 5.7 per cent, Capco 5.6 per cent) (31 December 2009 5.9 per cent).

Cash of £174 million was applied to repayment of debt facilities and swap amendments between 31 December 2009 and 31 March 2010, comprising the £150 million of prepayments and refinancing of loans and termination of interest rate swaps referred to in the 2009 preliminary results and other scheduled loan repayments. This includes the refinancing of the outstanding loans of £546 million secured on Lakeside, Thurrock, with a new seven year, £525 million facility secured on the same asset. The net cash outflow includes £70 million for termination and amendment of interest rate swaps (11p per share in NAV terms). This and the £24 million of net capital expenditure and £11 million of REIT entry charge were the principal components in the increased Group net external debt. The pro forma cash and net debt positions of CSC and Capco are as follows:

The group is in compliance with all financial debt covenants. The Xscape Braehead Partnership, CSC's 50 per cent joint venture with Capital & Regional, has renegotiated the terms of and partially prepaid its £49 million asset-specific loan facility due in 2014, with the loan to value covenant waived for two years.

Property valuation and market background

The UK property market has continued to show underlying strength in the first quarter of 2010 with the IPD all property monthly index showing capital growth for the quarter of 3.9 per cent. The IPD retail monthly index showed 4.4 per cent capital growth and the underlying picture of UK retail sales in the first quarter has been satisfactory with the BRC reporting a 1.8 per cent increase in national like-for-like non-food sales. Consistent with recent practice, the group has not undertaken quarterly property valuations as at 31 March 2010.

Capital Shopping Centres trading and prospects

Occupancy of established centres, treating tenants in administration as unoccupied, has remained high at 97.7 per cent (31 December 2009: 97.8 per cent). Compared with the exceptionally high tenant failure levels of the first quarter of 2009 (92 units and 4.1 per cent of passing rent), the first quarter of 2010 saw just 18 units and 0.7 per cent of passing rent enter administration.

Activity in the letting market has remained positive. CSC achieved 43 lettings in the first quarter producing an aggregate increase of £1.8 million (117 per cent) in annual passing rent:

·; The first quarter of each year is typically slow for long term lettings; 12 long term deals were signed in the first quarter of 2010, in aggregate 8 per cent below ERV

·; The 13 short term deals signed in the quarter are around 25 per cent below previous passing rent which compares favourably with an average of 35 per cent below in 2009. 7 turnover only deals and 11 CSC Enterprises licenses were also agreed

In addition, progress has been made in re-letting units let in 2009 on a temporary basis. These temporary leases provide a £20 million rental opportunity on expiry as they represent 7 per cent of 31 December 2009 ERV but only 2 per cent of rent roll at that date. Currently around a sixth of these temporary leases are in advanced re-letting negotiations on terms which, if concluded, would significantly improve annual passing rent for these units.

Estimated footfall is up over 3 per cent year-on-year for CSC's established centres, building on 2009's footfall increases.

Excluding tenants in administration and formal payment plans, 95 per cent of the March quarter rent was collected within 28 days of the quarter date (previous quarter: 95 per cent; first quarter of 2009: 92 per cent).

The St. David's Partnership continues to make letting progress with the 1 million sq. ft. extension to St. David's, Cardiff, which opened in October 2009. 90 shops are now open and trading. The proportion of the extension let or in solicitors' hands has now reached 76 per cent by area and 74 per cent by income (9 March 2010 - 74 per cent and 71 per cent respectively) including a further seven new retailers to Wales and two new to UK shopping centres. New openings include Carluccio's, JoJo Maman Bebe and Hollister. An additional 3 per cent of income is under advanced negotiation, with continued new tenant interest and strong footfall throughout the centre.

CSC opened its major new mall, St Andrew's Way, Eldon Square on 16 February 2010. The mall is fully let and the opening has been a huge success with both retailers and consumers alike. Footfall has been strongly ahead since opening, with new retailers such as Apple, Hollister, Superdry and Guess introduced to the city.

With the leisure and catering upgrade in the Yellow and Blue Quadrants of MetroCentre, Gateshead, CSC has added significantly to the Centre with a new Odeon cinema featuring the region's first IMAX screen and a family dining area, with the last phase opening in Autumn 2010. The new space is now almost fully let with 98 per cent of area and 96 per cent of income exchanged or in solicitors' hands.

In addition to existing capital commitments, work continues on CSC's £125 million of identified revenue-enhancing active management opportunities. For example detailed planning consent has now been received for the new 60,000 sq. ft. flagship store for Next at Eldon Square, Newcastle with various other remodelling projects in the planning process. In addition, CSC is continuing to explore the feasibility of a number of major extensions to larger centres with a view to strengthening their market position.

Capital & Counties trading and prospects

The Covent Garden estate is trading well with portfolio occupancy being maintained at 99 per cent and footfall for the first quarter over 10 per cent higher than the same period of 2009. Rent collection is at a similar level to the previous quarter with 98 per cent received to date.

Good tenant re-engineering progress has been made in the quarter with 4 new tenants introduced, 12 leases renewed and 6 rent reviews settled. Contracts have been exchanged with HMV for the surrender of their unit in King Street and negotiations are ongoing with potential new occupiers in line with the re-zoning strategy for the estate. Terms have just been agreed with Caprice Holdings for a new concept restaurant in the Flower Cellars building in place of Rex Restaurants. Work continues at the flagship store in Bedford Chambers which is due to open later in the year.

Earls Court & Olympia's exhibition and conference business has performed as expected in the first quarter, with the lower level of advance bookings received last year reflected in a lower EBITDA than the same period in 2009. Forward licence fee bookings for 2010 have remained at satisfactory levels. Progress in relation to the Earls Court Redevelopment Area (ECRA) has continued with considerable momentum and we will shortly be submitting our final representations to the London Plan. We are also progressing a joint venture agreement between all three land owners within the ECRA with a view to providing for a development that meets the aspirations of all stakeholders on a commercially viable basis.

Other activities of Capco including the Great Capital Partnership and the international activities have continued to perform satisfactorily.

Disposals

The Group continues to actively explore tax efficient options to exit over time its direct investment in the USA.

The final pre-conditions for the disposal of Westgate, Oxford, for £56 million were met in April and, as such, the transaction reported in our March press release has completed.