Purchase of properties

Derwent Valley Holdings PLC
20 May 2004


Derwent Valley Holdings plc

Purchase of Central London Properties


Derwent Valley Holdings plc ("Derwent Valley"), the specialist Central London
property investment and redevelopment group, has acquired three substantial
Central London commercial properties from Chelsfield plc for a total
consideration of £77 million including costs.

The portfolio comprises a total floor area of 23,755 m2 (255,700 ft2), and
produces a current net rental income of £5.065 million p.a.  The transaction was
financed from existing bank facilities.

The properties are:


Henry Wood House, 3/7 Langham Place & 75/77 Great Portland Street, W1.

A leasehold property with 55 years of the headlease remaining.  It comprises
6,570 m2 (70,700 ft2) of offices let to the British Broadcasting Corporation for
the entire term and subject to rent reviews in February 2006, 2027 and 2048.
There is also 845 m2 (9,100 ft2) of retail and restaurant space let on varying
lease terms.   The total net income is £1,440,190 per annum, after deducting the
£45,250 per annum ground rent, which is fixed throughout the term.



Riverwalk House, 155/166 Millbank, SW1.

A leasehold property comprising 6,950 m2 (74,800 ft2) of offices, which are all
let to the Secretary of State for the Environment until April 2011, with rent
reviews in 2004 and 2009.  The net rent is £1,633,500 per annum after deduction
of ground rent of £521,500 per annum.   The headlease expires in 2063 and has
one further review in 2027.



19/29 Woburn Place, Bloomsbury, WC1.

A freehold, ten storey office building of 9,390 m2 (101,100 ft2) let at
£1,991,144 per annum.  There are three tenancies, all expiring in March 2005,
with the majority of the income from the Secretary of State for the Environment.


John Burns, Managing Director of Derwent Valley, comments:


"All three properties are in our core area - the West End and its immediate
surrounding villages.  The buildings offer opportunities for enhancement both
through lease management and refurbishment and will benefit from the improving
conditions in the West End property market."


Jones Lang LaSalle acted for Derwent Valley while Michael Elliott represented
Chelsfield.


                                                                   20th May 2004


ENQUIRIES:

Derwent Valley Holdings plc                                   Tel: [phone]

John Burns, Managing Director

College Hill                                                  Tel: [phone]

Gareth David                                        [e-mail]


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