Preletting at Grosvenor Place

Derwent Valley Holdings PLC
7 June 2001




                         DERWENT VALLEY HOLDINGS PLC

            Further pre-letting at 21 Grosvenor Place, London SW1

Derwent Valley Holdings plc ('Derwent Valley') has, through one of its
subsidiaries, pre-let further office space at 21 Grosvenor Place, SW1 to Enron
Power Operations Limited ('Enron'). Enron took 1,980 sq. m (21,300 sq. ft)
earlier this year and is now taking an additional 1,170 sq. m (12,600 sq. ft),
at £0.7 million per annum.

The rent payable equates to £55 per sq. ft, for a lease expiring in 2014, with
reviews in 2004 and 2009. Derwent Valley negotiated the early surrender of the
lease that was in place when the building was acquired.

Refurbishment of this newly-let space will be incorporated into the current
scheme, at an additional cost of £1m, with the work scheduled for completion
at the end of 2001. Derwent Valley acquired 21 Grosvenor Place for £25m in
October 2000 and, following completion of works, it will comprise 5,200 sq m
(56,000 sq ft) of office space

John Burns, Managing Director of Derwent Valley, comments:

'We are delighted that Enron has chosen to take further space in this exciting
scheme. It bears out our view that demand still remains strong for quality
office accommodation in Central London.'

                                                                   7 June 2001

ENQUIRIES:

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

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