Thg Regulatory News (THG)

25 Apr 2006 07:00

Terrace Hill Group PLC25 April 2006 25 April 2006 Terrace Hill Group PLC ("Terrace Hill") Development Fund Established In Partnership with Jones Lang LaSalle Corporate Finance Terrace Hill, the AIM-listed property group, and Jones Lang LaSalle CorporateFinance, have established a new property development fund - Terrace HillDevelopment Partnership ('THDP') - to acquire, develop and sell commercialproperties in all sectors throughout the UK. This new fund is part of Terrace Hill's strategy of seeking ways to leverage itsequity and management expertise to enhance returns for its shareholders. The fund was oversubscribed and raised £10 million of new equity with theminimum investment being £50,000 for private investors and £25,000 for pensioninvestors. Terrace Hill invested £2 million in the fund. Terrace Hill has transferred interests in seven of its developments to THDP,which have an estimated sales price of over £90 million. Further developmentswill be chosen by the board of THDP which will comprise equal numbers ofdirectors nominated by Terrace Hill and Jones Lang LaSalle Corporate Finance.This partnership enables the two parties to pool expertise and skills toidentify potential development projects. The majority of developments will each have a completed development value ofbetween £5 million and £20 million. Terrace Hill will manage both thedevelopments and letting/sale process on THDP's behalf. The fund will have aminimum life of four years, after which no new developments will be acquired.During this time investors in THDP will be entitled to a priority return equalto 15% per annum plus a share of the profits. Terrace Hill Managing Director Philip Leech said: "This is a further stepforward in the growth of Terrace Hill. The creation of THDP is part of ourstrategy of expanding into asset management using our proven track record todeliver significant returns to investors and shareholders alike." Julie Green, Director at Jones Lang LaSalle Corporate Finance, said: "The aimof THDP is to provide private investors with access to high quality propertyinvestment opportunities, whilst providing flexible innovative financingsolutions for developers. Private investors are looking more closely atcommercial property, while property financing is evolving, resulting in thisbeing a fast-moving and exciting market." Full details of the fund including THDP's developments are available fromTerrace Hill or Jones Lang LaSalle Corporate Finance on request. * * ENDS * * Contact: Philip Leech, Group Managing Director Tel: 01642 243444 Alasdair Robinson, Noble & Company Limited Tel: 0131 225 9677 Isabel Crossley, St Brides Media & Finance Ltd Tel: 020 7242 4477 Julie Green, Jones Lang LaSalle Corporate Finance Tel: 020 7399 5227 Notes to editors Terrace Hill Group PLC - AIM-listed property group with a Triple Net Asset Valueof £89.985 million. It has two divisions, Commercial Development andResidential Investment and Development, with a total development programme ofaround £900 million. Terrace Hill reported an increase of over 20% in pro-formaTriple NAV to 48.06p per share in the year to 31 October 2005, and a 40%increase in final dividend from 0.5p per share to 0.7p per share. Jones Lang LaSalle Corporate Finance Limited - a subsidiary of Jones LangLaSalle Incorporated, authorised and regulated by the FSA, which specialises inmost aspects of investment banking and structured finance for commercial realestate, including corporate and project equity raising, mergers andacquisitions, indirect property investment vehicles, joint ventures and securingstructured and senior debt. Jones Lang LaSalle Jones Lang LaSalle (NYSE: JLL) has more than 100 offices worldwide and operatesin more than 430 cities in 50 countries. With 2005 revenues of approximately$1.4 billion, the company provides comprehensive integrated real estate andinvestment management expertise on a local, regional and global level to owner,occupier and investor clients. Jones Lang LaSalle is an industry leader inproperty and corporate facility management services, with a portfolio of 923million square feet worldwide. In 2005, the firm completed capital markets salesand acquisitions, debt financings, and equity placements on assets andportfolios valued at $43 billion. LaSalle Investment Management, the company'sinvestment management business, is one of the world's largest and most diversereal estate money management firms, with approximately $30 billion of assetsunder management. For further information, please visit www.joneslanglasalle.com This information is provided by RNS The company news service from the London Stock Exchange