Trading Statement

Grainger PLC
05 October 2007



5 October 2007

                                  Grainger plc

                                 Trading Update



Grainger plc ("Grainger" or the "Company"), the UK's largest quoted residential
property owner, today provides a trading update in advance of its preliminary
results announcement for the year to 30 September 2007, which will be issued on
29 November 2007.

Sales of residential property from our core portfolio have continued to exceed
September 2006 valuations and total sales volumes are expected to be
approximately £128m for the 12 months to 30 September 2007 (2006: £126m).
Increased volumes and improved margins on sales will result in trading profits
exceeding those achieved in 2006.

During the second half of the year, Grainger completed or exchanged contracts
for the purchase of approximately £110m of tenanted residential properties in
the core portfolio, bringing the total value of acquisitions made in the year to
approximately £151m. This includes the acquisition of the £62.5m, 300-unit
portfolio in The Tilt Estate Company, which we announced in September.

Recent changes in the availability of credit and cumulative increases in
interest rates will inevitably affect the mortgage market and there is general
acceptance that the overall rate of growth in the UK housing market will slow in
the coming months.  In the year to 30 September 2007, however, overall house
price growth has been relatively strong (the Halifax All Houses, All Buyers
Index for the period shows annual growth of 10.7%) and we anticipate that the
overall increase in the vacant possession value of our UK residential portfolio
(excluding major acquisitions made) will be in the range of 9.5% to 10.5% for
the year.

Purchasing activity in our retirement solutions division has continued in line
with expectations at our interim results.  Good progress has been made in
integrating the major acquisitions of the CHARM portfolio and The Capital
Appreciation Trust ("CAT") which we completed in the first half of the year.
Vacancy rates and subsequent sales values in CHARM have exceeded our
expectations and we have made significant progress in letting the vacant
properties at CAT, reducing vacancies from 25% to 10%.  Including these
acquisitions, purchases in this division for the whole year amount to
approximately £252m and we have made sales of approximately £18m (2006: £29m and
£13m respectively).

In August we announced the final closing of G:res1, our market rented fund. In
total we have raised £159m of third party equity from a group of blue-chip
institutional investors and Grainger's stake in the fund now stands at 21.63%
(£44.3m). The assets in the fund were valued at £435m at the end of June 2007
and the net asset value per share had shown positive growth of 14% to the same
date since launch in November 2006.

The development division has also performed in line with expectations.  As
reported in July, it has obtained a resolution to grant outline planning consent
for a major mixed-use 132 hectare development on part of our land holdings near
Waterlooville in Hampshire.

We have continued to be active in acquiring properties in the German residential
market and have completed the acquisitions of a further 876 units in the second
half of the year, bringing our total portfolio to 4,253 units.

In April we improved the Company's liquidity position by issuing £112m of
convertible bonds at a coupon of 3.625% and a conversion price of 864 pence per
share.

The Company will comment in more detail on its progress at the time of its
preliminary results announcement.




For further information:


Grainger plc                                             Financial Dynamics
Rupert Dickinson                                         Stephanie Highett

Tel: [phone]                                Tel: [phone]
Andrew Cunningham                                        Dido Laurimore

Tel: [phone]                                Tel: [phone]



Notes to Editors:

Grainger plc is the UK's largest listed residential property owner, trader and
development company.  Listed on the FTSE-250, the Company aims to deliver
shareholder value through combining its core activities in the management and
trading  of portfolios of regulated and assured tenancies and in the fields of
residential development, fund management, equity release and asset management.
In addition, Grainger is expanding its operations into continental Europe and
currently owns over 4,200 residential units in Germany.




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