Acquisition

Derwent Valley Holdings PLC
16 May 2000



                         DERWENT VALLEY HOLDINGS PLC
                      £22.1M CENTRAL LONDON ACQUISITION

Derwent Valley Holdings plc, the specialist Central London property
investor/refurbisher, has exchanged contracts to purchase the landmark office
building, Telstar House, Eastbourne Terrance, W2 for £22.1m plus costs. 
Derwent will finance the purchase from existing bank facilities.  The 86,208
sq.ft (8,012m2) 14 storey building, with 59 car spaces, is located directly
opposite Paddington Station and strategically placed to benefit from the
regeneration scheme proposed for Paddington Basin.  The property, which occupies
a 0.72 acre site, is freehold, with the exception of a small area held on a long
lease.  It is let on a full repairing and insuring lease for an unexpired term
of 18 years to London Regional Transport.  The current rent under an outstanding
1998 rent review, has been agreed at £1,550,000 pa with a further review due in
2003 and every 5 years thereafter.  In addition, there is a public house of
3,617 sq.ft. (336m2) let to Bass Holdings plc on full repairing and insuring
terms for 99 years from March 1963 at a peppercorn, with an outstanding review
at March 1998 based on 80% of open market value.

Commenting on the transaction John Burns, Derwent Valley's Managing Director,
said; 'The acquisition continues our commitment to Central London, concentrating
on the West End and those areas close by, which have the strongest growth
prospects.  Telstar House gives us an involvement in Paddington Basin, an
exciting area with great potential.  This property has opportunities for
improvement, both from reversionary prospects under the existing lease, and
refurbishment and redevelopment in the medium and longer term.  We will be
undertaking a planning study to fully consider the potential of the site.'

This is the second large purchase Derwent has undertaken this year, the first
being the £29m acquisition of New Garden House, Hatton Garden, EC1 in March. 
Since year end, Derwent has either completed or exchanged contracts for the
disposal of £47m of smaller Central London and provincial properties.


Contact:  John Burns                    020 7486 4848
          Derwent Valley Holdings plc