Final close of G:res1

Grainger PLC
28 August 2007
          

28 August 2007
                    Grainger plc ("Grainger"/the "Company")

         GRAINGER SUCCESSFULLY CONCLUDES FUNDRAISING FOR G:RES1 FUND -
               attracts TOTAL THIRD PARTY EQUITY OF £159 MILLION

              Mitsubishi Corporation acquires a £15 million stake


Grainger plc, the UK's largest quoted residential property owner, today
announces that it has concluded its highly successful capital raising activity
for G:res ("the Fund"), the UK's largest market-rented residential investment
fund, which it advises and manages.

In concluding its current fundraising activity, the Company has sold £15 million
of units in the Fund to Mitsubishi Corporation, a transaction that takes the
total third party investment in G:res to £159 million and which reduces
Grainger's equity stake to £43 million or 21.63%.

G:res1 first launched on 22 November 2006 with a seed portfolio of 1,400
properties. Following the acquisition in March 2007 of the 700-unit Ability
portfolio, which is predominately located in East London, the Fund now has circa
2,100 units, 90% of which are located in London and the South East.

Following the Fund's semi-annual revaluation at the end of June, the property
investment value stands at £435 million, equating to a Net Asset Value ("NAV")
of £227.7 million or a share value of 114p. Since launch in November 2006 the
Fund NAV has grown by 14%.

Mitsubishi Corporation is the latest in a line of prestigious third party
investors to commit equity to G:res1.  Other investors include Achmea, APPI,
British Airways Pensions Fund, FF&P, LGPI, Nomura, Norsk Hydro, Storebrand,
Swiss Re and the Universities Superannuation Scheme.

Commenting on the growth of the Fund's investor base, Rupert Dickinson, Chief
Executive of Grainger, said:

"We are delighted with the support of our new and existing investors. Whilst the
capital markets are challenging, for commercial property in particular, we
continue to be encouraged by the support and recognition of respected investors
about the long-term attractions of Grainger's management ability in the
residential sector.

"We are pleased to see the Fund perform so well, as we continue to integrate the
Ability portfolio acquisition into the Fund. This will provide a good platform
from which to generate long-term performance growth for Fund investors together
with additional opportunities to deliver value for the shareholders of Grainger
through increasing management and performance fees."

Quinton Hill-Lines, Grainger's Managing Director of Fund Management, added:

"Having come very close to our strategic hold level of 20% we are very happy to
draw this capital raising process to a successful close.  However, we are
currently looking at a number of interesting acquisition opportunities for the
Fund which may result in a further capital raising process in the latter part of
this year or the early part of next."


                                       END


For further information:

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

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


Notes to Editors:

Grainger plc is the UK's largest listed residential property owner, trader and
development company.  Listed on the FTSE-250, the Company aims to deliver
shareholder value through combining its core activities in the management and
trading  of portfolios of regulated and assured tenancies and in the fields of
residential development, fund management, equity release and asset management.
In addition, Grainger is expanding its operations into continental Europe and
currently owns over 4,000 residential units in Germany, which are managed from a
local office in Mannheim.

M3 Capital Partners Limited acted and continues to act as adviser to Grainger
with respect to the structuring and placement of the Fund.



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