Sign In
Last checked at 
20 Mar 2009 07:00
ο»Ώ
20Β MarchΒ 2009
TERRACE HILL GROUP PLC
("Terrace Hill")
TERRACE HILL GROUPΒ ACHIEVES RATIFICATION OF PLANNING CONSENTS AT TWO SCHEMES
Planning consentsΒ ratifiedΒ forΒ two Sainsbury's food storesΒ -Β in Bishop Auckland, CoΒ DurhamΒ and in Helston,Β CornwallΒ
Update on Baltic Business Quarter
Terrace Hill Group plcΒ (AIM: THG), a leading UK property development and investment company,Β announces that itΒ has had the planning consentsΒ forΒ itsΒ retail and leisure schemeΒ atΒ Β Bishop Auckland andΒ itsΒ Sainsbury's foodstore development inΒ Helston, Cornwall,Β confirmedΒ byΒ the Government OfficesΒ for theΒ North East andΒ South WestΒ respectively,Β andΒ ratifiedΒ byΒ the Secretary of State for Communities and Local Government. As a result,Β both schemesΒ will now proceedΒ during the course of the next few months.
Β Bishop Auckland, CoΒ Durham
In Bishop Auckland, Terrace Hill will regenerate landΒ thatΒ has been vacant and derelict since the closure ofΒ theΒ Warner ElectricsΒ facilityΒ in 2003Β and deliver a 150,000 sq ft retail and leisure park, together with a new stadium for Bishop Auckland FC. The scheme will create approximatelyΒ 1,000 jobs both during the development phase and once it is fully operational.
The park will include a newΒ 90,000 sq ft Sainsbury's food store, a 58,000 sq ft leisure complex,Β two restaurants and a brand new Northern Premier League standard stadium for Bishop Auckland Football Club.
Β Helston,Β Cornwall
In HelstonΒ Terrace HillΒ hasΒ successfully achievedΒ planningΒ for aΒ 55,000 sq ft Sainsbury's foodΒ store with petrol station. Sainsbury's will retain the freehold of the scheme.
Baltic Business Quarter,Β Gateshead
AtΒ itsΒ Baltic Business QuarterΒ scheme inΒ Gateshead,Β Terrace Hill alsoΒ announcesΒ that the pre-let toΒ Npower will not proceed. TheΒ adverseΒ movement of investment yields since theΒ pre-letting was agreed hasΒ meant theΒ projectΒ would not be profitableΒ and, as a result,Β Terrace HillΒ hasΒ decided to postpone this phase of the development until an alternativeΒ profitableΒ pre-letΒ has beenΒ secured. The Baltic Business Quarter remains very attractive toΒ occupiersΒ andΒ itΒ is already home to Gateshead College's 180,000 sq ft facility and the regional headquarters of the Open University. Terrace Hill continues to work on a number of further potential pre-let opportunities, on terms that reflect current values and which should produce healthy margins.
Commenting, Philip Leech, Chief Executive of Terrace Hill, said:
"We are delighted toΒ haveΒ receivedΒ planningΒ for bothΒ of theΒ foodstore developments.Β Β Our skill in identifying under-utilised sites for much higher value uses and the value we add through the planning process lies at the heart of our business. These schemes will have a positive impact on our Net Asset Value in the coming year and we have a number of other foodstore developments under negotiation,Β which should add significantly to the growth of our business in the future. TheseΒ schemesΒ andΒ theΒ other pre-let development opportunitiesΒ thatΒ we areΒ currentlyΒ working on demonstrate that we can continue to add value despite a difficult economic background.
"Our original strategy for theΒ Baltic Business QuarterΒ remains firmly in placeΒ and we continue to see ongoing good levels of interestΒ from local, national and international occupiers.
"The foodstore transactions and other pre-let development negotiations demonstrate that we can continue to add value to the business despite difficult economic conditions."
ENDS
For further information, please visit www.terracehill.co.uk or contact:
Terrace Hill Tel:Β 020Β 7631 1666Philip Leech
Financial Dynamics Tel: 020 7831 3113Richard Sunderland /Β Rachel Drysdale /Β Jamie Robertson terracehill@fd.com
Oriel Securities Tel: 020 7710 7600
Richard Crawley / Daniel Conti
Follow the stocks
