£29M Central London Property Acquisitions

Derwent Valley Holdings PLC
14 March 2000


DERWENT VALLEY HOLDINGS PLC
£29 MILLION CENTRAL LONDON ACQUISITION

Derwent Valley Holdings plc has exchanged contracts to
purchase the freehold interest of New Garden House, 78-83
Hatton Garden, EC1 and  6-7 St Cross Street, EC1 from
Prestbury Group PLC for a consideration of £29 million
plus costs, which will be financed through existing bank
facilities.  The acquisition comprises 4 office buildings
with a total floor space of 126,113sq.ft. (11,716m2) on a
site of 1.15 acres.  Currently they produce an income of
£2,942,926 per annum from leases which all potentially
expire in September 2003.  The largest building, New
Garden House, which fronts Hatton Garden, totals 75,772
sq.ft. (7039m2) and together with two linked buildings of
5,294 sq.ft. (492m2) and 13,692 sq.ft. (1272m2) has an
income of £2,446,250 per annum and is principally
occupied by accountants, Pannell Kerr Forster.  The
remaining building of 31,355sq.ft. (2913m2) at 6-7 St
Cross Street is multi-let to a number of tenants
including media companies and a leisure centre.  Income
from this building is £496,676 per annum.  A feature of
the complex is the large courtyard, which is overlooked
by all the buildings.  An application for a 250,000sq.ft.
(23,234m2) redevelopment of the entire site has been
submitted.   Hatton Garden, which has been known as
London's jewellery centre for many years, is located on
the Clerkenwell/Holborn borders and, like many other
traditional areas, is rapidly changing identity and
attracting the new users of space from the media world,
as well as residential and retail occupiers.

John Burns, Managing Director, commented: 'Derwent will
be looking to design an interesting refurbishment scheme
for the existing buildings as well as exploring
development opportunities.   This acquisition continues
Derwent's strategy of purchasing multi-tenanted Central
London properties in improving locations which can be
actively managed to add value'.

Contact:

John Burns, Managing Director
020 7486 4848
Derwent Valley Holdings plc

John Rudofsky
020 7638 9571
Citigate Dewe Rogerson