Re: Letting

Derwent Valley Holdings PLC
16 January 2007



16 January 2007


         Derwent Valley Holdings plc ("Derwent Valley" or "the Group")


 DERWENT LETS HORSEFERRY HOUSE, WESTMINSTER SW1, TO BURBERRY AS NEW GLOBAL HEAD 
                                     OFFICE


Derwent Valley Central Limited, a subsidiary of Derwent Valley Holdings Plc, has
pre-let the 160,000 sq ft (14,864 sq m) Horseferry House on Horseferry Road,
Westminster to Burberry, the London-based global luxury goods brand.  Burberry
will relocate its international head office from its existing buildings around
Haymarket to Horseferry House. The move will also allow Burberry to consolidate
its Head Office workforce into one flagship building which will provide an
efficient and cost effective London location for the future.


Horseferry House was originally purchased by Derwent Valley in 2005 and has been
redesigned by architects Allford Hall Monaghan Morris.   Work has now started on
site and involves the comprehensive refurbishment of the 1930s office building
which sits on an island site on Horseferry Road.  The proposals will complement
the original architectural features of the building whilst providing modern and
contemporary offices.  It is anticipated that the building works will be
completed in Spring 2008.


Burberry will occupy the entire nine storey building on a 25-year lease at
£5,292,000 per annum, with an option to break at the end of the fifteenth year
and an 18-month rent-free period. The rent equates to £38.20 per sq ft on the
prime space.


The leasing of Horseferry House reflects a growing trend identified by Derwent
Valley for major companies to relocate just outside London's core West End. This
follows the recent pre-letting of Telstar in Paddington to Rio Tinto and the
letting of the Johnson Building in Hatton Garden to Grey Advertising, Faber
Maunsell and Thomson Scientific.



John Burns, Managing Director of Derwent Valley, commented: "Horseferry House is
an exciting project in an improving location and we are delighted to have
secured this substantial letting.  This confirms a strong market for
well-designed high quality space just outside the core West End and reinforces
our strategy of identifying great opportunities within London's many 'urban
villages' and attracting top-grade occupiers."



                                     -Ends-



For further information please contact:


Derwent Valley Holdings plc                            Tel: [phone]
John Burns


Financial Dynamics (for Derwent Valley)                Tel:  [phone]
Stephanie Highett/Dido Laurimore/Marcus Pepperell



Notes to editors:



About Derwent Valley



Derwent Valley is one of the capital's leading investors. Specialising in
innovative design, Derwent Valley's circa £1 billion portfolio comprises
income-generating assets, office refurbishment, new-build projects and mixed-use
schemes.



On 14 November 2006, the Company announced its proposed merger with London
Merchant Securities plc to create Derwent London, a leading central London
specialist with a combined portfolio in excess of £2 billion.



The group not only focuses its work on the West End, but in other London
locations where it perceives future value.  Derwent Valley prides itself on
pioneering design solutions, creating interesting work environments and working
with Britain's leading architects and designers.



Website: www.derwentvalley.co.uk






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