GBP 70m JV Acquisition

Grainger Trust PLC
9 May 2005


9th May 2005

                 GRAINGER TRUST ACQUIRES £70M CHURCH 
         COMMISSIONERS RESIDENTIAL PORTFOLIO IN JOINT VENTURE

Grainger Trust plc ('Grainger'), the UK's largest quoted residential property
investor, today announces it has exchanged contracts to acquire, in joint
venture with the Genesis Housing Group ('Genesis'), a predominantly residential
freehold property portfolio from the Church Commissioners for a total
consideration of £70m.

Grainger and Genesis have formed Grainger GenInvest LLP ('Grainger GenInvest'),
a 50/50 joint venture limited liability partnership, which will acquire the
portfolio that comprises 455 residential units and 16 shop properties in Maida
Vale, London W9, Waterloo, London SE1, and Stoke Newington N16.

The consideration will be satisfied by both Grainger and Genesis each
contributing upto £15m in cash from their own resources with the balance being
funded through non-recourse finance raised by Grainger GenInvest.

Following completion of the acquisition, which is expected to take place by 24th
June 2005, Grainger will provide asset management services while Genesis,
through its subsidiary Pathmeads Housing Association, a Registered Social
Landlord, will manage the individual properties.

The residential element of the portfolio consists of approximately 200 regulated
rental units with the remainder being assured tenancies. The shops are located
underneath the residential blocks.

Rupert Dickinson, Chief Executive of Grainger, commented: 'This is an
opportunity to jointly acquire a first rate portfolio of rented London
properties and to work closely with a highly regarded housing association.'

Grainger GenInvest was advised by Dickinson Dees and Devonshires while the
Church Commissioners were represented by Knight Frank and Trowers & Hamlins.

Contact:

Grainger Trust plc
Rupert Dickinson, Chief Executive.                            Tel: [phone] 
Andrew Cunningham, Deputy Chief Executive and Finance Director
                                                              Tel: [phone] 
Baron Phillips Associates
Baron Phillips                                                Tel: [phone] 
                                                                   07050 124119


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