Trading update

Grainger Trust PLC
04 October 2006

                              GRAINGER TRUST plc:

                                 TRADING UPDATE



Grainger Trust plc ('Grainger' or 'the Company') the UK's largest quoted
residential property owner, today announces continued strong trading volumes.



Grainger is providing this trading update in advance of its preliminary results
for the year ended 30 September 2006 to be issued on 28 November 2006.



During the second half we have seen a notable strengthening of the residential
market in London and the South East which accounts for 60% by value of
Grainger's UK tenanted residential portfolio. We anticipate that the overall
increase in the vacant possession value of our portfolio will be in the region
of 9% for the year.



Core tenanted residential sales have continued to exceed our September 2005
valuations and total sales volumes are expected to be approximately £137m for
the 12 months to 30 September 2006 (2005: £133m).



During the second half of the year, Grainger completed or exchanged contracts
for the purchase of approximately £54m of tenanted residential properties taking
the total acquisitions made during the year to approximately £97m at investment
value and including our share of joint venture acquisitions, this figure
increases to £195m (2005: £184m including £91m acquisitions in City North
Group).



At 30 September 2005, we valued our regulated portfolio at 73% of vacant
possession value.  Due to sustained strong market and transaction activity we
now consider this to be very conservative.  Our valuers are reviewing the
position and have indicated that there is likely to be a significant improvement
in this aspect of the valuation at 30 September 2006.



Activity in our equity release division has continued in line with expectations
expressed at our interim results.  Highlights in the second half included
Bridgewater, our own equity release business, collecting the 'Awards for
Innovation' at the coveted Investment, Life and Pensions Award 2006.  Industry
figures (SHIP) reveal that our overall market share of the UK's home reversion
market has grown to 38%.



The development division has also performed in line with expectations and, as
reported in July, has entered into a £70m multi site mixed use partnership with
the London Borough of Islington and The Guinness Trust for three sites in
Hornsey, Downham Road and Barnsbury.  In addition, we have been selected as
preferred developer by two local authorities; West Berkshire Council and Network
Rail for a mixed use gateway development around Newbury train station and the
London Borough of Haringey for a mixed use development adjacent to Seven Sisters
London Underground station.



We have continued to be active in Germany and, since the half year, have
completed the acquisition of a further 513 units, bringing our total portfolio
to 2,807 units, with several other acquisition opportunities in the pipeline.



The Company will comment in more detail on its progress at the time of its
preliminary results announcement.

                                      Ends



Contact:

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



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




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