Last checked at 29 Oct 2012 07:00
29 October 2012
TERRACE HILL GROUP PLC
("Terrace Hill" or the "Company")
Forward Funding and Pre-sale of Student Accommodation Development to Legal & General Property
Terrace Hill, a leading UK property development and investment group, announces that its joint venture with Osborne (the "JV") has exchanged conditional contracts with Legal & General Property ("LGP") for the forward funding and sale of its 1,104 unit student accommodation development in Southampton city centre. Further details will be provided when the transaction has completed.
The scheme is well located in the City centre with good access to transport links and is pre-let in its entirety to the University of Southampton on a 38 year lease, having received planning consent from Southampton City Council in July 2012. Construction is scheduled for completion in summer 2014.
The property will be arranged over three towers, ranging from eight to 16 storeys high, positioned around a central piazza. In addition to the student accommodation, the scheme includes a shop, café, gym and learning centre at ground level.
Philip Leech, Chief Executive of Terrace Hill, commented:"Our student accommodation development at Mayflower Plaza is an extremely attractive, high quality scheme in a city with a large student population, let to a very strong tenant in the University of Southampton on a long lease. These factors underline the institutional quality of the asset, which has allowed us to secure the forward funding and sale of the property to Legal & General Property."
Gordon Aitchison, Director of Investment and Development at Legal & General Property, said: "In line with our fund objective to acquire long let, index-linked assets with investment grade covenants, this transaction provides us with a secure long term income stream that is hedged against inflation. Furthermore, representing our third major funding of student accommodation this year, it demonstrates our growing appetite to look to alternative sectors as attractive investment opportunities and the increasing role that the private sector will play in funding critical social infrastructure."
For further information please visit www.terracehill.co.uk or contact:
Philip Leech/Jon Austen Tel. 020 7631 1666
Terrace Hill Group PLC
Gareth Price/Mark Young Tel: 020 7710 7600
Oriel Securities (Nominated Adviser)
Richard Sunderland/Will Henderson/Faye Walters Tel: 020 7831 3113
FTI Consulting 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.