Grainger plc Regulatory News (GRI)

22 March 2011

Grainger plc ("Grainger"/ the "Company")

GRAINGER ACQUIRES GENESIS HOUSING GROUP'S SHARE IN

GRAINGER GENINVEST PARTNERSHIPS

Grainger plc, the UK's largest quoted residential property company, today announces that it has acquired Genesis Housing Group's ('Genesis') 50% share in Grainger GenInvest Partnerships* ('Grainger GenInvest') along with associated subordinated loan notes for a total consideration of £15m, financed out of existing Company resources. The transaction will make Grainger the sole owner of the portfolio. On completion of the transaction, the GraingerGenInvest Partnerships secured new debt facilities of £120m from HSBC and Santander which enabled existing lenders to exit.

Grainger GenInvest was created in June 2005 between Grainger and Genesis, each owning 50% of the joint venture, and now consists of eight high quality residential blocks in central London, consisting of 1630 units of which 470 are regulated tenancies and 301 are assured tenancies. The portfolio is consistent with Grainger's focus on high quality reversionary assets in areas offering prospects of capital growth. The assets also currently generate a gross rent roll of approximately £12m. The current market value of the underlying assets is approximately £285m.

This significant acquisition helps deliver Grainger's strategic objective to acquire portfolios of residential assets delivering good long-term returns. Furthermore, the sourcing of new debt specific to the transaction from banks who have not previously lent to the group provides Grainger with a further opportunity to diversify its sources and type of Company financing.

Commenting on the transaction, Andrew Cunningham, Grainger's Chief Executive said;

"This is a fantastic, high quality portfolio, and a rare opportunity to acquire over 1500 units the majority of which are within four miles of Westminster. It is a natural and positive step for Grainger to acquire the remaining 50% of this joint venture, which Grainger is familiar with and firmly committed to. It will allow us to ensure that residents continue to receive the same high level of service and commitment that they have come to expect.

"This transaction is consistent with our strategy to acquire high quality portfolios of residential assets which deliver good long-term returns. The fact that we already know the portfolio in-depth made this even more appealing."

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Notes to Editors

Grainger plc is the largest residential property owner and manager traded on the London Stock Exchange. Our business activities in the UK and Germany cover ownership, trading, fund management, property management and development of residential property. Grainger is also a leading provider of retirement housing solutions, including home reversion products through Bridgewater Equity Release. We have approximately £2.1bn of wholly-owned property assets and £2.8bn of assets under management.

*Grainger GenInvest Partnerships comprises Grainger GenInvest LLP and Grainger GenInvest No.2 (2006) LLP.