Acquisition

Derwent Valley Holdings PLC
6 April 2001

                         DERWENT VALLEY HOLDINGS PLC

    £22.2 million acquisition of office property at Paddington, London W2

 Derwent Valley Holdings Plc, the specialist Central London property investor,
has exchanged contracts to purchase the long leasehold interest in 55/65 North
Wharf Road, Paddington W2, from Burford Midland Properties Ltd. for £22.2m
(plus costs), through its subsidiary, Colebrook Estates Limited.

The acquisition comprises four, three-storey terraced office buildings, with a
total area of 7,520 sq. m (80,950 sq. ft) and 66 car parking spaces. It is let
to four tenants and currently produces net income of £1,032,000 per annum,
after payment of ground rent of £118,842.

There are outstanding rent reviews, which are anticipated to increase the net
income to c£1,500,000 per annum. The head lease expires in 2096, with a review
in 2013 and 21-yearly thereafter.

John Burns, Managing Director of Derwent Valley Holdings Plc, comments:

'This transaction is part of Derwent Valley's policy of buying in the
strategic areas immediately adjoining the core West End. Last year, Telstar
House, Eastbourne Terrace, W2, was our first purchase in this rapidly
improving area. We believe that the property with an outlook over the Grand
Union Canal at Paddington Basin will benefit from its proximity to the ongoing
regeneration.

'The investment has immediate growth from reversions under the existing leases
and scope for adding future value from refurbishment or redevelopment. We
believe that Paddington, with its closeness to the West End and accessibility
through the Heathrow Express, will become one of the major central London
villages. The tight planning and conservation policy which limits supply
within the core West End makes this an attractive and strategic location for
occupiers.'

                                                                  6 April 2001
ENQUIRIES:

Derwent Valley Holdings plc                                  Tel: [phone]
John Burns, Managing Director

College Hill                                                 Tel: [phone]
Gareth David                                Email: [e-mail]
Richard Pearson                          Email: [e-mail]