Acquisition

Grainger Trust PLC
07 September 2004

FOR IMMEDIATE RELEASE
7th September 2004


                    GRAINGER TRUST DIVERSIFIES INTO SERVICED 
                   APARTMENTS WITH £5.8M HEATHROW ACQUISITION


Grainger Trust plc ('Grainger'), the UK's largest quoted residential investment
group, today announces that, as part of its stated corporate strategy of
diversification into related areas of activity, it has acquired its first
serviced apartments building for approximately £5.8m.

Grainger has purchased the Berkeley Park serviced apartment complex close to
Heathrow Airport. Located just off the Bath Road in Marlborough Crescent, the
building comprises a total of 33 apartments with planning consent for an
additional 17 units, taking the total to 50.

This is Grainger's first investment in the serviced apartment market and the
company has appointed the internationally based Bridge Street Worldwide to
manage Berkeley Park. The complex has been running at occupancy levels of well
in excess of 85% over the past few months as international corporate travel
recovers from both 9/11 and the Iraq war.

Rupert Dickinson, Grainger's Chief Executive, said: 'This is our first move into
the exciting Serviced Apartment market and reflects our stated strategy of
diversifying into other residential related growth areas.

'Working alongside the highly renowned and experienced Bridge Street will enable
us to fully understand the Serviced Apartment market with little downside for
Grainger. Once the additional apartments have been built I estimate that our
cash yield will be over 9 %.'
                                                                      
Rupert added that the acquisition also brings together Grainger's residential
development and management skills with Bridge Street's serviced apartment
operational expertise which should enhance Berkeley Park's income stream and
capital value.

Berkeley Park was constructed and opened in 2002. Currently it comprises three
detached two-floor buildings set in a landscaped courtyard with ample private
parking.

Max Thorne, director of development UK and Europe for Bridge Street Worldwide,
said: 'We are delighted to have been selected to manage Grainger's corporate
apartments in Berkeley Park. The addition of new locations outside of central
London, where the majority of our owned and managed units are located, enables
us to offer our existing clients an enhanced service.

'Berkeley Park's location at Heathrow, and near the M4 corridor, is particularly
ideal because most of our customers travelling to the UK arrive at Heathrow and
several high profile companies, including Microsoft and Prudential, are based in
the area.

'There is a growing market for short term serviced apartments in the Heathrow
area and these units, with fully furnished spacious living accommodation and
additional optional services, will certainly appeal to our customers.'


                                   Ends.


Contact:

     Rupert Dickinson, Chief Executive, Grainger.      Tel: [phone]
     Baron Phillips, Baron Phillips Associates.        Tel: [phone]





Notes To Editors

     1. Grainger is the UK's largest quoted residential property investor, 
        specialising in regulated and life tenancies as well as development
        and fund and property management.

     2. It was founded in 1912 and floated in 1983

     3. Grainger owns a portfolio of almost 12,000 residential units across the 
        UK with total property assets of approximately £1.3bn.

     4. It is estimated that there are currently more than 7,000 serviced 
        apartments in London.

     5. Bridge Street Worldwide own and manage 500 units in London, a further 50 
        in Paris and approximately 3,500 in the US.


                      This information is provided by RNS
            The company news service from the London Stock Exchange