Office Lettings

Derwent Valley Holdings PLC
11 July 2003


                          DERWENT VALLEY HOLDINGS PLC
                                        
                                        
      Four Central London lettings will add £1.2m p.a. to total rent roll
                                        


Derwent Valley Holdings plc ("Derwent Valley"), the Central London property
investment and development group, has concluded four lettings on recently
refurbished space in a variety of locations within its portfolio. These lettings
total 62,865 sq. ft (5,840 sq. m) and ultimately will add £1.2m p.a. to rental
income.


25 Savile Row, W1: Bank Hapoalim BM, an Israeli bank, has taken a pre-let on
9,443 sq. ft (877 sq. m) of office space, on two floors, on a ten year term,
with a 12 months' rent free period and a rent review after five years. The
letting is at £45 per sq. ft for the first two years, rising to £46.50 per sq ft
for the third year and £47.50 per sq. ft for the fourth and fifth years. This
will give an income of £434,000 p.a. rising to £458,000 p.a., inclusive of
storage and car parking. The refurbishment is due to be completed by September
2003.


Tea Building (formerly Centric House), Shoreditch High St, E1: an agreement for
lease has been entered into with Mother Limited, an advertising agency, for
44,000 sq. ft (4,088 sq. m) of office space for 15 years, with five yearly rent
reviews, at an initial rent of £440,000 p.a. (£10 per sq. ft), increasing to
£550,000 p.a. (£12.50 per sq. ft) from the end of year three through to year
five.


The tenant has been given a capital contribution equivalent to six months' rent
and has the right to determine the lease upon expiry of the fifth year, subject
to a penalty payment of six months' rent. If this break is not exercised, the
rent will rise to £770,000 p.a. for the sixth to eighth year and then to
£880,000 p.a. for the next two years, after which the tenant has an option to
break. The refurbishment is due to be completed by the end of this year.


135-143 Charing Cross Road, WC2: Sainsbury's Supermarkets Limited has taken a
pre-let of a 5,112 sq. ft (475 sq. m) retail unit, at £185,000 p.a. for 20
years, with five yearly rent reviews. The tenant has a six month rent free
period, and the refurbishment will be completed in November 2003.


Gordon House, Victoria, SW1: The Powers Turner Group Limited, a media and
advertising group, has leased 4,310 sq ft (400 sq m) of offices at £129,300
p.a., equivalent to £30 per sq. ft. The ten-year term, with a seven months rent
free period, has a rent review and tenant's break after five years

John Burns, Derwent Valley Managing Director, comments:

"We are pleased to have achieved these lettings in what is a difficult Central
London market. Rents in the West End villages appear to be stabilising and we
have experienced increased activity on our vacant space in the last few months.
The lettings at Savile Row and the Tea Building are noteworthy because they
demonstrate lettings at opposite ends of the market, with commencing rents of
£45 per sq. ft and £10 per sq. ft.


"The letting at Savile Row endorses Derwent Valley's refurbishment product at
the higher end of the market, whilst the Tea Building letting to Mother Limited
shows the group's skill in identifying new areas, where tenants are seeking
value and interesting space. The amount of space we have let this year now
totals 132,000 sq. ft (12,263 sq. m) representing total rental income of £3.2
million p.a."


11 July 2003



ENQUIRIES:

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

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







                      This information is provided by RNS
            The company news service from the London Stock Exchange