Purchase of Portfolio

Derwent Valley Holdings PLC
06 March 2003



DERWENT VALLEY HOLDINGS PLC



Purchase of commercial property portfolio from London Borough of Islington


Derwent Valley Holdings plc ("Derwent Valley"), the Central London property
investment and development group, has acquired a portfolio of 43 commercial
properties from the London Borough of Islington ("Islington"), for a total
consideration of £37.8 million, before costs.



The Islington portfolio comprises a total of 3,250 m2 (350,000 ft2), with a
current rental income of £1.75 million p.a., located mainly in Clerkenwell and
King's Cross, and let at an average rent of £5.00 per ft2.


John Burns, Managing Director of Derwent Valley, comments:

"This acquisition represents a rare opportunity to acquire a highly reversionary
  portfolio of income producing properties, with numerous lease management
opportunities. We expect to sell a number of the smaller properties and
concentrate on those buildings with the greatest scope for active management."




Leader of Islington Council, Steve Hitchins, adds:



"Providing services like clean streets, good schools and social care is the core
business of the Council. We do not exist to be a commercial landlord. This sale
makes a significant contribution to our pension fund and more of our revenue
funding can now be focussed on services. By focussing more on our core business,
we have secured a good deal for the Council, for our residents and council tax
payers and for our staff."



Gerald Eve and Richard Susskind & Co. acted for Derwent Valley, while ATIS REAL
Weatheralls represented Islington.


                                                                    6 March 2003


ENQUIRIES:


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

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




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