Sale of investment property

Derwent Valley Holdings PLC
10 March 2003


                          DERWENT VALLEY HOLDINGS PLC

        Sale of investment property at 21 Grosvenor Place, London SW1


Derwent Valley Holdings plc ("Derwent Valley"), the Central London property
investment and refurbishment group, has sold its 5,200 m2 (56,000 ft2) office
refurbishment at 21 Grosvenor Place, London W1 for £32.2 million to MEAG MUNICH
ERGO Real Estate Investment GmbH., a German institutional investor.


The property, which is held on a 200-year lease from 1952 at £1 p.a., is let to
Royal Bank of Scotland, The French Embassy, Hicks Muse Tate & Furst and Citywest
Homes Limited. Recent lettings in the building have been achieved in the range
of £45 to £50 per ft2, with a total rent roll of £2.334m p.a.


John Burns, Managing Director of Derwent Valley, comments:


"Having refurbished and fully let 21 Grosvenor Place, this sale continues our
policy of selectively selling completed projects. This deal demonstrates the
quality of our scheme, the calibre of tenants we have been able to attract to
it, and the continuing demand of the investment property market."


Gerald Eve acted for Derwent Valley with CB Hillier Parker representing the
purchasers.


                                                                   10 March 2003

ENQUIRIES:


Derwent Valley                                                Tel: [phone]

John Burns, Managing Director

College Hill                                                  Tel: [phone]

Gareth David                                        [e-mail]


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