Acquisition of Bromley JV

Grainger Trust PLC
08 August 2003







FOR IMMEDIATE RELEASE



8th August 2003



         GRAINGER TRUST AGREES ACQUISITION OF BROMLEY JOINT VENTURE



Grainger Trust plc ('Grainger'), the UK's largest quoted residential property
investor, today announces that it has reached agreement to acquire the
outstanding equity in Bromley Property Holdings Limited ('Bromley') from an
entity owned by Deutsche Bank AG ('Deutsche Bank'), its joint venture partner,
for an initial cash consideration of approximately £24.3m payable at completion,
which is expected to be before the end of September 2003. The Bromley group
principally comprises BPT Limited and its subsidiaries.



A further cash payment for the equity will be due in December 2004 if the
Nationwide UK House Price Index rises by at least 10% between August 2002 and
August 2004. If triggered, this additional payment will be a minimum of £5m but
cannot exceed £10m. Grainger has also agreed to purchase Deutsche Bank's loan
stock in Bromley for approximately £13.7m together with accrued interest of
approximately £2.0m, payable in cash in December 2003.



Funding of the acquisition of both the equity and loan stock in Bromley is from
a new bank facility and existing resources. The acquisition is subject to
shareholder approval and a circular detailing the proposed transaction will be
sent to shareholders next month.



The initial cash consideration, in the opinion of Grainger's Board, approximates
to the net asset value of Deutsche Bank's equity interest in Bromley at 31st
March 2003 after full deductions for marking the debt to market and for
contingent tax.



At 31st March 2003 the open market value of Bromley's properties was
approximately £668.4m and net debt was approximately £497.3m. In the six months
to 31st March 2003 Bromley produced pre-tax profits of £11.2m and £29.5m for the
12 months to 30th September 2002.



Since Bromley acquired BPT in April 2001, the joint venture has successfully
sold mainly assured or assured shorthold tenancy properties leaving Bromley with
a portfolio predominantly comprising regulated tenancies, which are Grainger's
core business. The Board of Grainger considers the acquisition is an excellent
opportunity to acquire a substantial portfolio of regulated tenancies which will
increase Grainger's portfolio of residential properties from over 5,000 to more
than 11,500 units and further consolidates Grainger's position as the leading
quoted owner of private sector residential properties in the UK.



Contact:          Grainger Trust plc                     Tel: [phone]
                  Andrew Cunningham, Deputy Chief Executive & Finance Director

                  Deutsche Bank AG                       Tel: [phone]
                  Alistair Dixon

                  Baron Phillips Associates              Tel: [phone]
                  Baron Phillips



Ends.






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