Office Letting

Derwent Valley Holdings PLC
18 March 2004

DERWENT VALLEY HOLDINGS PLC
Covent Garden Office Letting

On 15th March Derwent Valley Holdings plc ("Derwent Valley"), the specialist
Central London property investment and redevelopment group, let the majority of
the offices at its award winning development, The Davidson Building, Southampton
Street, Covent Garden, London, WC2.

L.E.C.G. Limited, an international management and financial consultancy, leased
16,860 sq ft (1,566 m2) comprising the third, fourth and fifth floors at a
rental of £695,725 per annum (£41.25 per sq ft) on a 15-year term, with rent
reviews every five years. The rent will rise to a minimum of £758,700 per annum
(£45 per sq ft) at the first review.

The tenant was given an 18-month rent-free period and an option to break the
lease at the end of the tenth year. Of the remaining space, terms have been
agreed on the 7,380 sq ft (686 m2) first floor, which leaves the second floor of
6,410 sq ft (596 m2) available. The ground floor retail space is let to
Sainsbury's.

John Burns, Derwent Valley Managing Director, comments:

"We are pleased to have let the majority of the office space in this development
and with terms agreed on further space, this endorses our view that tenant
demand, especially in the West End and its surrounding areas, continues to
improve."


                                                                 18th March 2004

ENQUIRIES:

Derwent Valley                   020 7659 3000
John Burns, Managing Director

College Hill                     020 7457 2020      [e-mail]
Gareth David


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