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6 Dec 2010 07:00
6 December 2010
TERRACE HILL GROUP PLC
("Terrace Hill" or the "Company")
TERRACE HILL AGREES £53.5 MILLION SALE OF 129 WILTON ROAD, VICTORIA
Terrace Hill Group plc (AIM: THG), a leading UK property development and investment group, announces that it has exchanged contracts for the sale of 129 Wilton Road, Victoria, for £53.5 million, reflecting a net initial yield of 5.78%, to Cordea Savills European Commercial Fund, an open ended Luxemburg based fund investing across Europe.
The sale is due to complete before the end of December 2010. The proceeds will be used to repay the debt secured against the property and the balance for reinvestment into new projects.
129 Wilton Road is a 67,734 sq ft mixed development scheme which Terrace Hill completed in 2008 and is arranged over basement, ground and seven upper floors. It comprises 65,436 sq ft of prime, Grade A office space as well as 2,298 sq ft of ground floor retail accommodation. The property is being sold with planning permission for an additional floor which provides potential for a further 2,605 sq ft of office space.
The building is fully let, to a number of high quality tenants including E.On Ruhrgas UK E&P Limited and IQPC Ltd. The average weighted lease term, to break, is circa 6.5 years and the building provides a total rent of around £3,277,000 per year or an average of £48.37 per sq ft. The retail space is let to Prêt a Manger.
Philip Leech, Chief Executive of Terrace Hill, comments: "Wilton Road has proved to be a very successful and profitable scheme and reflects our development skills in the central London market. We anticipate making acquisitions of similar sites in the future further adding to shareholder value in our business."
DE & J Levy advised Terrace Hill and Savills acted on behalf of Cordea Savills.
-Ends-
For further information, please visit www.terracehill.co.uk or contact:
Terrace Hill | |
Philip Leech, CEO | Tel: +44 (0)20 7631 1666 |
Robert Lane, Director | |
Oriel Securities (Nominated Adviser) | Tel: +44 (0)20 7710 7600 |
Tom Durie/Gareth Price | |
Financial Dynamics | Tel: +44 (0)20 7831 3113 |
Richard Sunderland/Olivia Goodall/Will Henderson | terracehill@fd.com |
Notes to editors:
Terrace Hill Group PLC is a regionally based UK property development and investment group quoted on AIM, with two key divisions:
§ Commercial development
§ Residential investment.
Formed in 1986, the Company has five offices located in London, Glasgow, Teesside, Bristol and Manchester, managing a commercial development programme and a residential investment portfolio.
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