Acquisition

Grainger Trust PLC
05 January 2006


FOR IMMEDIATE RELEASE
5th January 2006

                              GRAINGER TRUST plc

                €66.4M ACQUISITION OF GERMAN RESIDENTIAL ASSETS

Grainger Trust plc ('Grainger'), the UK's largest quoted residential property
investor, today announces it has exchanged contracts to acquire three separate
portfolios of mainly German residential property for a total of €66.4m (£45.6m)
cash, equating to €907 per sq m. The acquisition will be satisfied from existing
resources although an element of new non-recourse debt may be obtained in due
course.

Located primarily in the South Western region of Baden-Wuerttemberg (575 units)
and Berlin (411 units), the total investment includes 926 residential units and
60 commercial units covering approximately 73,180 sq m in total. The portfolio
generates an annual income of €4.8m, reflecting a gross yield of approximately
7.2%. The net yield after operating costs is expected to be approximately 5.7%.

Rupert Dickinson, Chief Executive of Grainger, said: 'This acquisition increases
our presence in the German market and further enhances our geographic
diversification. These are good quality properties and support our long-term
strategy. We are getting exposure in the very dynamic region of Southern Germany
and a presence in Germany's capital.'

Grainger has now completed its €71.5m Preussag German residential portfolio
acquisition (announced on 26th October 2005) which, together with the above
acquisitions, brings its total German residential portfolio to 2,332 units.

                                     -more-

Contact: Andrew Cunningham, Deputy Chief Executive
and Finance Director, Grainger.                        Tel: [phone]
Baron Phillips, Baron Phillips Associates.             Tel: [phone]

Grainger was advised by Dr Luebke on the Baden-Wuerttemberg acquisition and by
Burntan on the Berlin acquisitions


                                     Ends.




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