Property acquisition

Derwent Valley Holdings PLC
01 July 2005


                           DERWENT VALLEY HOLDINGS PLC
                      Purchase of West End Office Building


Derwent Valley Holdings plc ("Derwent Valley"), the specialist Central London
property investment and refurbishment group, has, through a subsidiary company,
exchanged contracts to acquire the freehold interest of Horseferry House,
Horseferry Road, SW1 from the First Secretary of State for a consideration of
£32.35 million excluding costs.


The office building has a total area of approximately 13,940 m2 (150,000 sq ft)
on basement, ground and seven upper floors and occupies a substantial island
site in Victoria.


The vendor has leased back the entire office space for two years at a rent of £2
million per annum with a tenants rolling break option from 31st March, 2006. The
property includes two small retail units which are let for a short term at
nominal rents.


John Burns, Managing Director of Derwent Valley, comments:


"Following the success of our phased refurbishment at nearby Greencoat and
Gordon House, Horseferry House brings another interesting building to the
portfolio with considerable scope for redesign and improvement.   While the
tenant is in occupation, we will be considering refurbishment schemes to enable
value to be maximised."

                                                                 1st  July, 2005


ENQUIRIES:
Derwent Valley Holdings plc
John Burns, Managing Director
020 7659 3000






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