Trading Statement

Grainger Trust PLC
04 October 2004





FOR IMMEDIATE RELEASE

4th October 2004

                      GRAINGER TRUST plc TRADING UPDATE: -

                  CONTINUED STRONG PERFORMANCE IN SECOND HALF

       FULL YEAR PRE-TAX PROFITS EXPECTED TO BE AHEAD OF MARKET CONSENSUS


Grainger Trust plc ('Grainger'), the UK's largest quoted residential investor,
today announces that second half trading to 30th September 2004 has continued to
be strong and, accordingly, it anticipates pre-tax profits ahead of the current
market consensus. Grainger is providing this pre-close period trading update in
advance of the preliminary results to be issued on 7th December 2004.


Core tenanted residential sales mirrored the first half with prices averaging
more than 10% above September 2003 valuations. Total sales of tenanted
residential are expected to be approximately £134m for the 12 months to 30th
September 2004.


Although the UK residential market has shown signs of slowing down in the past
few months Grainger does not anticipate any significant downward house price
movement across its market sectors; rather it believes there will be a period of
low, or zero, growth over the next few months.


This slow down in the market though is being reflected in the lengthening of the
time it now takes between properties going under offer and exchange of contracts
but prices achieved are still well above September 2003 valuations.

During the second half of the year Grainger completed or exchanged contracts for
the purchase of £101m of tenanted residential and last month announced its first
acquisition of a serviced apartment complex at Heathrow Airport for £5.8m. The
Group believes the serviced apartment market has real potential for long-term
growth.


In July Grainger entered into a new £900m committed banking facility. The
refinancing provides Grainger with headroom of approximately £220m at 30th
September 2004, giving it significantly more flexible funding arrangements at a
lower cost of funds.


The new facilities involved the repayment of some further fixed rate loans and
consequently there will be a total exceptional interest charge for the year of
approximately £5.4m.


As reported at the half year, Grainger's Development and Trading division
produced a significant contribution to profits through the sale of land at
Kennel Farm, Basingstoke and the disposal of much of the Group's commercial
property portfolio. This contribution will not be replicated in the second half.


Robert Dickinson, Chairman, said: 'Grainger's strength is its ability to trade
well, even when market conditions are less favourable and we remain confident of
our future prospects. To this end it is vigorously pursuing opportunities in two
potential growth areas: the life tenancy market and tenanted residential in
Europe.'


The company hopes to comment in more detail at the time of its preliminary
results announcement on 7th December 2004.


                                     Ends.

Contact:

Grainger Trust plc

Rupert Dickinson, Chief Executive                            Tel: [phone]

Andrew Cunningham, Deputy Chief Executive & Finance Director Tel:[phone]

Baron Phillips Associates

Baron Phillips                                                Tel: [phone]
                                                                   07050 124119








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