GBP70M Islington Partnership

Grainger Trust PLC
14 July 2003


FOR IMMEDIATE RELEASE

14th July 2003



          GRAINGER SECURES £70M ISLINGTON LOCAL AUTHORITY 

            PARTNERSHIP MIXED USE REGENERATION SCHEMES


Grainger Trust plc ('Grainger') today announces that it has been selected by
Islington Council to develop two key local authority sites in North London with
an estimated development value of approximately £70m.

The schemes are to be developed in partnership with Islington Council and will
provide offices, for the Council, a range of community buildings, private flats
and affordable homes.

The largest site, at the Hornsey Road Baths, is a mixed use development which
will comprise more than 200 residential units, 43,000 sq ft of offices for
occupation by Islington Council, together with community buildings that will
include a new theatre created from the listed part of the former swimming pool
complex.

Approximately 35% of the residential units will be designated affordable homes
and will be developed in partnership with the Guinness Trust.

The second site is located in the heart of the historic, and highly popular,
Barnsbury area of Islington, close to Upper Street, where Grainger is proposing
to convert three former Victorian school buildings into more than 70 duplex
apartments while a similar number of new houses and flats will also be developed
on the site.

The proposed scheme will create a new frontage to Barnsbury Park Road and will
include a new public footpath and a small park. Again 35% of the new homes
created will be affordable and will be developed, and managed, by Guinness
Trust.

Rupert Dickinson, Grainger's Chief Executive, said: 'We are delighted to have
been chosen by Islington for these two mixed use urban regeneration schemes to
be developed in partnership with the Council. These projects are a natural
development of our expanding portfolio of urban regeneration schemes and
complements our £400m tenanted residential portfolio.

'Importantly for Grainger these projects are being undertaken in true
partnership with Islington over the next six or seven years while our joint
venture arrangements with Guinness ensure that we are focused on high quality
residential for sale capable of meeting local demand.'

Grainger anticipates that detailed planning consent for the schemes will be
secured by Spring 2004 and work is expected to get underway during the summer of
2004 with Hornsey Road completed late summer 2006 and Barnsbury completed two
years later.

Grainger's professional team includes architects Pollard Thomas & Edwards,
engineers Alan Baxter & Associates, cost consultants EC Harris and property
consultants FPD Savills. The Council has been advised on the transaction by
Donaldsons.


Contact:

 Rupert Dickinson, Chief Executive, Grainger Trust plc. Tel: [phone]
 Sean Slade, Director, Grainger Trust plc.              Tel: [phone]
 James Fielder, Granger Trust plc                       Tel: [phone]
 Baron Phillips, Baron Phillips Associates              Tel: [phone]


                                   Ends


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