Trading Statement

Grainger Trust PLC
06 October 2005



FOR IMMEDIATE RELEASE
6th October 2005



                       GRAINGER TRUST plc TRADING UPDATE:

       PRE-TAX PROFITS EXPECTED TO BE SLIGHTLY AHEAD OF MARKET CONCENSUS


Grainger Trust plc ('Grainger') the UK's largest quoted residential investor,
today announces that second half trading volumes to 30 September 2005 have
exceeded those of the first half and accordingly, it anticipates pre-tax profits
slightly 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 6 December 2005.

Core tenanted residential sales have continued to exceed our September 2004
valuations and total sales volumes are expected to be approximately £132m for
the 12 months to 30 September 2005 (2004: £135m).

Trading performance over the year has reflected the general perception of the UK
housing market; a slowing down in the sales process with properties taking
longer to exchange after offers have been made and relatively modest gains in
average house price movements.

During the second half of the year Grainger completed or exchanged contracts for
the purchase of approximately £46m of tenanted residential properties taking the
year's total to £100m at investment value (year to 30 September 2004: £118m). We
also completed the acquisition of City North Group plc and some 450 properties,
of which approximately 200 were regulated, from the Church Commissioners in a
joint venture with Genesis Housing Group.

Activity in our development and trading division has continued in line with
expectations, although annual profits will be slightly weighted to the first
half because of commercial property and Kennel Farm land sales, both of which
fell in the period to the end of March 2005.

Integration of City North Group plc has gone well and we are pleased with the
quality of the portfolio and are optimistic about the opportunities it presents.

Acquisitions of home reversion assets under the Norwich Union agreement have
started slowly as the time taken to process transactions from initial marketing
to completion is typically about six months.

Norwich Union are intensifying their home reversion marketing and IFA training
efforts and are confident that acquisitions will grow. In addition the recent
launch of our Bridgewater Flexible Home Reversion Plan has been well received by
the market.

As reported at the half year, we have increased our syndicated bank facility to
£1300m, of which some £450m was available at 30 September 2005. This puts the
Group in a strong position to be able to pursue its ambitious growth plans.

The company will comment in more detail at the time of its preliminary results
announcement on 6 December 2005.

                                      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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