Thg Regulatory News (THG)

28 Oct 2008 07:00



28 October 2008

Terrace Hill Group plc

("Terrace Hill" or the "Company")

TERRACE HILL LETS 15,000 SQ FT AT MANHATTAN GATE TO HERTEL

Hertel relocates UK office HQ to major Tees Valley business park development

Middlehaven Properties, a joint venture between Terrace Hill Group and Helmsley Group announces that it has let over 15,000 sq ft of office space to Hertel, the Middlesbrough based global industrial services company, at Hudson Quay 1, Manhattan Gate, Middlehaven in Middlesbrough.

Hertel, which provides support services and specialised products to international businesses, has taken one and a half floors at the development on a 15 year lease. The company, which employs 7,500 people worldwide, including 3,500 in the UK, is relocating its UK administrative HQ of 70 staff, from its traditional base at Middlesbrough, where it has operated since 1975. Fit out works will begin shortly, and the company is expected to move in to Hudson Quay 1 in December, joining the Crown Prosecution Service, which occupies the remainder of the building.

Hudson Quay 1 itself comprises 30,700 sq ft of recently completed office space and is the first phase to be completed on the 200 acre Manhattan Gate site. When the development is completed, the site will consist of five office blocks, providing 142,500 sq ft of employment space. The completed buildings will sit in a superb landscaped arena on the waterside at Middlehaven, enjoy high car park ratios and easy access to both Darlington and Newcastle through the area's strong transport links. Middlesbrough town centre, its shops and transport network are also just a short walk away

Terrace Hill and joint venture partner, the Helmsley Group, are working with Tees Valley Regeneration, the organisation that promotes development opportunities and economic activity within the Tees Valley, on the development of the rest of the site. 

The next phase to commence construction at the scheme will be Hudson Quay 2, a sister building to Hudson Quay 1.  This modern glass building will offer views of the river to the front aspect and beautiful public art and landscaping to the rear. The building will be constructed over three floors with a large central atrium. A café bistro will link both Hudson Quay buildings.

Commenting, Philip Leech, chief executive, Terrace Hill, said: 

"This latest letting is an exciting endorsement of our development and Middlehaven as an office location and we are delighted to welcome Hertel to Manhattan Gate. 

"We look forward to working with TVR, Middlesbrough Council, and the local community on progressing the Manhattan Gate development further, and we are confident that the scheme will be a huge boost to the area, increasing levels of trade and helping to improve employment levels by attracting new occupiers to the area."

Tees Valley Regeneration chief executive Joe Docherty added: 

"We are delighted by this news - facilitating business growth and development is a cornerstone of our economic regeneration strategy and Hertel is a real Tees Valley success story.

"We believe the decision to move to the flagship regeneration project at Middlehaven is another positive indicator of Hertel's position in the global market and once again highlights a growing confidence in the Tees Valley."

Dodds Brown and Storeys:SSP acted as letting agents for Terrace Hill.

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

Terrace Hill

Philip Leech Tel: 020 7631 1666

Martin Vickerman Tel: 01642 243 444 

Financial Dynamics Tel: 020 7831 3113Rachel Drysdale / Jamie Robertson 

Tees Valley Regeneration Tel: 01642 632 013

Catherine Gordon

Notes to editors

Terrace Hill Group PLC is an AIM listed property development and investment group with three key divisions: 

Commercial development and investment

Residential investment 

Housebuilding

Formed in 1986, the company now has four offices in London, Glasgow, Teesside and Bristol, managing a total development and investment programme of some £1.3 billion, a residential investment portfolio of £300 million and a housebuilding landbank in Scotland with potential for over 1,400 residential units.