Fund second closing

Grainger PLC
25 June 2007

25 June 2007



                           Grainger plc ("Grainger")

GRAINGER ANNOUNCES THE SALE OF £78M OF UNITS IN G:RES1 FUND TO NEW AND EXISTING
                             THIRD PARTY INVESTORS


G:res1 Limited ("the Fund" or "G:res1"), the residential investment fund advised
by Grainger plc, the UK's largest quoted residential property owner, today
announces its successful second closing. The closing was made through the sale
of £78 million of shares held by Grainger. This closing takes the total third
party investment in the fund to £144 million. As a result, Grainger has sold
down its equity stake in G:res1 to 28% of the Fund's total committed equity.
This is in line with its long term strategy of maintaining a stake greater than
20%.

Since its launch on 22 November 2006 with a £210 million seed portfolio of 1400
properties, G:res1 has successfully grown the portfolio by 700 units through the
acquisition of the Ability portfolio in March 2007.  As a result, G:res1 now has
a combined fund gross asset value of circa £420 million, which generates gross
rental income of £21 million..

On launch, Grainger held 100% of the share capital of G:res1 and has sold shares
in the Fund to investors in two closings, through which it has attracted
investment from a wide range of prestigious UK and overseas institutional
investors.  Incoming investors at second closing are the Universities
Superannuation Scheme, British Airways Pensions Fund, LGPI (the Finnish state
pension fund), APPI (an Aberdeen-managed Fund of Funds) and Flemings Family and
Partners.  In addition, three of G:res1's existing investors, Swiss Re, Norsk
Hydro and Achmea have increased their equity stakes by a collective total of £15
million.

Grainger's retained interest in the fund is treated as an investment in an
associate with its share of profits recognised accordingly. The impact on
Grainger's accounts will be broadly neutral with the reduced share in the
profits of G:res1 being offset by the decrease in borrowing costs. Proceeds from
the sale will be used to repay Grainger's group debt.

Grainger is both the day-to-day property manager and asset advisor to the Fund
and is eligible for fees on a recurring basis and a promoted interest
performance payment at year seven or upon early wind-up of the Fund. Gross
recurring fees on an annualised basis generated by G:res1 are £4.5 million


Commenting on the Fund's second closing, Rupert Dickinson, Chief Executive of
Grainger, said:

"The continued interest in the Fund from such prestigious institutional
investors demonstrates both the Fund's robust business plan and the benefits
available through gaining access to a strong and diverse residential portfolio.
We are confident that our long-established position in the residential field,
combined with our highly-skilled fund, asset and property management teams will
continue to ensure that the Fund provides a compelling investment opportunity,
delivering consistent growth and positive returns to our fund investors and
shareholders."


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

"We are excited to be welcoming such highly regarded UK and overseas
institutional investors to the Fund, a clear indication that the strategy we put
in place at the Fund's launch is working and providing an attractive investment
opportunity.  Additionally, as a leading residential property adviser, we have
been able to capitalise on our ability to deploy our highly experienced teams,
which specialise in identifying portfolios of properties where we can unlock
considerable value."


                                     -ENDS-



Enquiries:

Grainger plc:
 Andrew Cunningham / Quinton Hill-Lines                Tel: [phone]

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



Notes to editors:

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




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