German Portfolio Purchase

Grainger Trust PLC
26 October 2005



FOR IMMEDIATE RELEASE
26th October 2005

                              GRAINGER TRUST plc:
           ACQUISITION OF €71.5M GERMAN RESIDENTIAL INVESTMENT PORTFOLIO

Grainger Trust plc ('Grainger'), the UK's largest quoted residential property
investor, today announces it has exchanged contracts to acquire a largely
residential property investment portfolio from Preussag Immobilien GmbH ('PSI')
for €71.5m (£48.9m) cash. The acquisition will be satisfied from existing
resources together with an element of new debt.

Located in the Metro Ruhr area of Germany, mainly in the cities of
Recklinghausen, Hamm and Herne, the portfolio comprises 1,406 homes, of which
192 are houses and the remainder apartments, and six commercial units covering
approximately 95,000 sq m in total (more than 1m sq ft). The portfolio generates
annual income of €4.5m, reflecting a running yield of approximately 6.3%.

Completion is anticipated by 31st December 2005 and is subject to approval from
Wfa, the state lending institution which provides subsidised loans for social
housing development. Approval will enable Grainger to assume the current low
cost debt on part of the portfolio.

Rupert Dickinson, Chief Executive of Grainger, said: 'This is an opportunity to
acquire high quality assets. It is also an important step forward in achieving
our European strategy and the portfolio provides us with a strong platform in
Germany from which we can grow.'
                                     

Under the terms of the acquisition Grainger will take on four employees from PSI
who will manage the portfolio from a base in Recklinghausen.

The portfolio sale represents part of PSI's owner, TUI AG, refocusing on travel,
leisure and shipping and its decision to sell its real estate activities.

Hans-Peter Rietze, Managing Director of PSI, commented: 'We are pleased to be
able to sell this portfolio to Grainger as this completes the divestment of our
German residential real estate assets. Grainger is a long-term investor with
extensive experience in the tenanted residential sector and we believe it is the
right owner of these assets.'

Grainger was advised by Dr Luebke (acquisition) and CB Richard Ellis
(valuation).

                                     Ends.
Contact:

Rupert Dickinson, Chief Executive, Grainger. Tel: [phone]
Baron Phillips, Baron Phillips Associates.   Tel: [phone]


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