Thg Regulatory News (THG)

13 May 2013

TERRACE HILL GROUP PLC

("Terrace Hill" or the "Group")

TERRACE HILL COMPLETES TWO PRE-LET AND PRE-SOLD

FOODSTORE DEVELOPMENTS WITH COMBINED VALUE OF £51.1 MILLION

- A third foodstore development in Skelton is also close to completion -

Terrace Hill Group PLC (AIM: THG), a leading UK property development and investment group, announces that it has completed the delivery of two pre-let and pre-sold foodstore developments in the North East of England; in Sunderland and in Sedgefield.

The Sunderland development is a £35 million, 97,729 sq ft supermarket, with six pump petrol filling station and 517 parking spaces, which was pre-let to Sainsbury's on a 25-year lease. Following completion of the store, ownership was transferred to Osprey Supermarket Income and Growth 1 LP, a private investor fund arranged by Osprey Equity Partners, which entered into a forward funding acquisition agreement with the Group for the development in April 2012.

The Sedgefield development is a 50,000 sq ft supermarket with 322 parking spaces, which was also pre-let to Sainsbury's on a 25-year lease, and pre-sold to The Eyre Estate Investment Fund for £16.1 million in September 2012.

Upon completion and delivery of both these developments the Group received the final payments from the respective purchasers.

Additionally, Terrace Hill is also due to complete its 41,800 sq ft foodstore development in Skelton on 10th June 2013 which has been pre-sold to Asda as owner occupier.

Terrace Hill has a strong pipeline of future foodstore developments; with four currently being worked through the planning process.

Philip Leech, Chief Executive at Terrace Hill, commented: "We are very pleased to have completed these new foodstore projects which form part of our ongoing development programme in this sector. Despite recent commentary about the slowdown in the growth of the large foodstore market, we are experiencing good demand from retailers for the right type of store in the right location. Our close relationships with the retailers and our expertise in sourcing sites and obtaining planning means that our pipeline of foodstore development projects is continuing to progress well."

-Ends-

For further information, please visit www.terracehill.co.uk or contact:

Oriel Securities (Nominated Adviser) Tel: 020 7710 7600

Gareth Price/Mark Young

FTI Consulting: Tel: 020 7831 3113

Richard Sunderland/Will Henderson/Faye Walters

terracehill@fticonsulting.com 

Notes to editors:

Terrace Hill Group

Terrace Hill Group PLC is a regionally based UK property development and investment group quoted on AIM.

Formed in 1986, the Company has five offices located in London, Glasgow, Teesside, Bristol and Manchester.