Letting of Property

Derwent Valley Holdings PLC
8 February 2002


                          DERWENT VALLEY HOLDINGS PLC

        Sainsbury's to move into Southampton Street, Covent Garden, WC2

Derwent Valley Holdings plc, the specialist Central London property investor
has, through its subsidiary Colebrook Estates Limited, pre-let 1,020 sq m
(11,000 sq ft) of retail space at one of the group's current projects, 5-12
Southampton Street, Covent Garden, London, WC2.  The unit has been let at
£575,000 pa on a 20-year lease to Sainsbury's Supermarkets Limited.

The 9,100 sq m (98,000 sq ft) retail and office redevelopment consists of two
adjacent properties, 5 Southampton Street and Tower House (at the corner of
Southampton St and Tavistock Street).  Both schemes were designed by architects
Lifshutz Davidson, and will be completed this year with Tower House scheduled
for completion in May  and 5 Southampton Street in October.

5 Southampton Street, with a total area of 3,990 sq m (43,000 sq ft), involves
an innovative design approach, which gives volume and light to the 2,970 sq m
(32,000 sq ft) of new office space by creating a full height atrium behind the
retained Edwardian facade.  Tower House, a 1930s building, is undergoing an
extensive  and  creative  refurbishment  to  provide 3,530 sq m (38,000 sq ft)
of offices, 1,300 sq m (14,000 sq ft) of retail space and 280 sq m (3,000 sq ft)
of residential accommodation.


                                                                 7 February 2002


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