Thg Regulatory News (THG)

27 Nov 2009 07:00



27 November 2009

TERRACE HILL GROUP PLC

("Terrace Hill" or the "Company")

TERRACE HILL SELLS KEAN HOUSE, COVENT GARDEN 

Terrace Hill Group plc (AIM: THG), a leading UK property development and investment group, announces that it has sold the freehold interest in its Kean House development in Covent Garden, London to a major UK institution for a total consideration of £16 million, representing a net initial yield of 6.4%.

Situated on the eastern boundary of Covent Garden and close to Holborn tube station, 6 Kean Street comprises a 26,000 sq ft prime Grade A comprehensive office refurbishment arranged over a basement and nine upper-storeys, together with two retail units fronting Kingsway. Completed by Terrace Hill in November 2007, the property is multi-let to a number of strong tenants, including Barrow Cadbury Trust and Virgin Green Fund (VGF Advisors UK LLP). The retail units are occupied by Costa Coffee and Adecco. 

The sale follows the recent re-letting of the entire fifth floor of the building, comprising 2,993 sq ft (NIA), to ChannelAdvisor, having simultaneously negotiated the surrender of the lease held by the previous tenant, Asset Services London Ltd. ChannelAdvisor relocated from UK headquarters in Richmond, taking the space on a five-year lease at a rent of £127,200 per annum, equating to £42.50 per sq ft. Currently just one floor remains vacant at the building, totalling 2,953 sq ft on the third floor.

Philip Leech, Chief Executive of Terrace Hill, said: 

"This sale demonstrates that there is strong demand in the market for good quality, well-managed assets particularly central London offices. The disposal will allow us to recycle the capital into profitable new projects, further enhancing our shareholder's capital invested in our business." 

Doherty Baines acted for the purchaser and Terrace Hill represented itself.

-Ends-

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

Terrace Hill Tel: 020 7631 1666 Philip Leech/Jon Austen 

Financial Dynamics Tel: 020 7831 3113Richard Sunderland/Olivia Goodall terracehill@fd.com

Notes to editors:

Terrace Hill Group PLC

Terrace Hill is an AIM-listed property development and investment group with specialist commercial development and investment and residential investment divisions.

Formed in 1986, the Company has offices in London, Teesside, Bristol and Glasgow, managing a commercial development programme, as well as commercial and residential investment portfolios.