Acquisition

Grainger PLC
31 January 2008



31 January 2008

                           GRAINGER PLC ("GRAINGER")

  GRAINGER ANNOUNCES ACQUISITION OF LISTED GERMAN RESIDENTIAL PROPERTY COMPANY
                              FRANCONORHEINMAIN AG



Grainger plc, the UK's largest quoted residential property company, announces
that it has exchanged contracts with Franconofurt AG ("Franconofurt") to acquire
a 54% shareholding in FranconoRheinMain AG ("FranconoRheinMain"), a residential
property company listed on the Frankfurt Stock Exchange.  The purchase price for
Franconofurt's shares in FranconoRheinMain is €1.50 per share.  Grainger has
simultaneously announced a tender offer to acquire the remaining shares of
FranconoRheinMain.  The tender offer price will be the minimum price required by
German securities law and is expected to be €1.76 to €1.80 per share.  The total
consideration for the acquisition of FranconoRheinMain is therefore expected to
be €45.3 million to €45.8 million in cash (assuming 100% acceptance of the
tender offer) which will be satisfied from Grainger's existing resources.

FranconoRheinMain has assembled a portfolio of approximately 2,300 units through
a targeted acquisition strategy which has involved stockpicking individual
assets. The portfolio primarily comprises apartments and houses in the
attractive Rhine-Main and Rhine-Neckar regions of Germany.  The market value of
FranconoRheinMain's portfolio as at 30 September 2007 was approximately €117
million.  For the nine months to 30 September 2007, FranconoRheinMain reported
pre-tax profits of approximately €8 million.  As at 30 September 2007,
FranconoRheinMain had net assets of approximately €49.8 million.

Grainger already owns over 4,500 residential units in Germany with a market
value (as at 30 September 2007) of €346 million.  Grainger's existing units are
located in or around the major cities of Munich, Stuttgart, Dusseldorf and
Berlin.  Currently Grainger's local office in Mannheim provides specialist asset
management services to these properties.  Following the acquisition of
FranconoRheinMain, Grainger will have an interest in approximately 6,800 units
in Germany with a market value of close to €500 million.  The acquisition of
FranconoRheinMain is expected to have a positive effect on Grainger's net asset
value and earnings per share.

FranconoRheinMain employs six full-time staff based in Frankfurt.  Grainger's
team will work in conjunction with FranconoRheinMain's management to unlock
maximum value from the assets through the deployment of Grainger's in-house
asset management capabilities, which it has been applying to its existing German
portfolio since it entered the market in late 2005. In addition, the enlarged
team will work together to further expand Grainger's presence in the German
market.

The tender offer will be conditional on receiving acceptances representing 70%
of FranconoRheinMain shares (including the shares to be acquired from
Franconofurt).  The acquisition of Franconofurt's shares is conditional on the
tender offer being successful.  Details of the terms and conditions of the
tender offer will be contained in an offer document which will be posted to
FranconoRheinMain's shareholders in due course.  The acquisition and tender
offer are being made by subsidiaries of Grainger.


Rupert Dickinson, Chief Executive of Grainger, commented:

"FranconoRheinMain represents an excellent strategic fit with our existing
portfolio in Germany and provides a strong platform for our continued growth in
this market.  Through this corporate acquisition, we are gaining ownership of a
high quality portfolio on attractive terms, which suits our investment profile,
both in terms of assets and location."

Quinton Hill-Lines, Grainger's Director of Corporate Development and Funds,
added:

"We are confident that we can generate competitive returns for our shareholders
by applying our specialist asset management skills to FranconoRheinMain's
portfolio.  In addition, we continue to see considerable demand for
co-investment opportunities from investors in our existing funds and we are
exploring ways to extend this model across our portfolio."


For further information:

Grainger plc
Rupert Dickinson/Quinton Hill Lines
Tel: [phone]

Lazard & Co., Limited
William Rucker/Patrick Long
Tel: [phone]


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


Notes to Editors

Grainger plc, listed on the FTSE-250 index, is the UK's largest quoted
residential property owner, with over 18,000 units under management across the
UK and in Germany.  Grainger's integrated business model, which has been adapted
and improved over its long history, includes investing in and managing assets
held under regulated tenancies and assured shorthold tenancies, development of
residential-led mixed-use schemes and the management of the UK's largest
market-rented residential fund.

Lazard & Co., Limited is acting for Grainger and no one else in connection with
the acquisition referred to in this announcement and will not be responsible to
any other person for providing the protections afforded to clients of Lazard &
Co., Limited or for providing advice in relation to the acquisition referred to
in this announcement.


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