Acquisition of Interest

Grainger Trust PLC
01 February 2007


1 February 2007

                        Grainger Trust plc ('Grainger')


        Grainger acquires financial interest in Church equity mortgages


Grainger Trust plc, the UK's largest quoted residential property owner,
announces today that it has acquired a financial interest in a portfolio of
equity mortgages, granted to the Church of England Pensions Board, from the
Church Commissioners for £134.46 million.

Grainger has acquired the Commissioners' rights to receive income and capital
receipts on the mortgages, which will continue to be administered by the Church
of England Pensions Board.  It follows the announcement made by the
Commissioners on 4 October 2006 that they had begun detailed discussions to
dispose of their interest, via a competitive tender process.

The transaction is in line with the Church Commissioners' aim of reducing its
exposure to UK residential property. Currently, around 1,300 retired clergy have
mortgages provided by the Pension Board to assist them in purchasing retirement
housing under the Church Housing Assistance for the Retired Ministry Scheme
(CHARM).  The Pensions Board has written to all of the retired clergy concerned
to advise them of the transaction and to reassure them that their mortgage
conditions with the Pensions Board remain unchanged.

Commenting, Peter Couch, Grainger's Director of Retirement Solutions, said:

'This transaction provides us with a large-scale exposure to the housing market
over a period of the owners' occupation.  Unlike many of our existing equity
release assets, we also receive an index-linked annual cash return without the
usual administrative costs, creating real value for our shareholders.'

Rupert Dickinson, Grainger's Chief Executive, added:

'This acquisition is an excellent fit with the rest of Grainger's equity release
and retirement solutions business and demonstrates Grainger's ability to source
and deliver innovative transactions. We are delighted to be able to work with
the Church Commissioners and the Church of England Pensions Board on this
transaction.'


                                     -ENDS-

Enquiries:

Grainger Trust:
Rupert Dickinson/ Peter Couch                        Tel: [phone]


Financial Dynamics:
Stephanie Highett / Dido Laurimore                   Tel: [phone]




Notes to editors:


About Grainger Trust plc

Grainger Trust plc ('Grainger'/'the Company') is the UK's largest quoted
residential property owner, with over 12,000 homes. The Company was established
in Newcastle in 1912 to acquire and manage tenanted residential properties.
Today, while acquiring, managing and selling these properties in the UK is the
mainstay of Grainger's business, the Company is increasingly active in other
areas, such as equity release, residential development and fund and asset
management. The Company is also expanding into residential development and
investment in Continental Europe.

Grainger operates in strict accordance with its Corporate Social Responsibility
policy, a copy of which is published on the company's website at
www.graingertrust.co.uk.



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