Disposal

Derwent London PLC
20 March 2007

20 March 2007



                         Derwent London plc ('Derwent')



              Derwent sells Swiss Cottage sITE for £18.25 million



Derwent London plc, Derwent Valley Holdings plc's new name following its merger
with London Merchant Securities plc (''LMS') in February 2007, today announces
the disposal of a residential site in Swiss Cottage, North London, to Galliard
Homes Limited for £18.25 million. The site, located at 2/20 Winchester Road and
157a Fellows Road, NW3, has the benefit of planning permission for a 76 unit
residential scheme.



This transaction represents the first sale of a non core property from the LMS
portfolio. The price reflects a significant premium over the 31st January 2007
valuation of £10 million.



John Burns, Chief Executive of Derwent London, commented: 'At the time of our
merger, we stated that we would be disposing of the non-core assets held within
Derwent's enlarged portfolio.  We will recycle the proceeds into our core
activity of acquiring and refurbishing offices in central London's principal
commercial villages, where we continue to see significant opportunities.'

                                     -ENDS-



For further information please contact:

Derwent London                                          Tel: [phone]
John Burns

Financial Dynamics                                      Tel: [phone]
Stephanie Highett / Marcus Pepperell












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