Thg Regulatory News (THG)

17 Jan 2006 07:01

Terrace Hill Group PLC17 January 2006 Terrace Hill Group PLC ("Terrace Hill" or "the Group") Trading Update Terrace Hill, the AIM-listed property group, is pleased to announce theacquisition of two significant development opportunities in the South East, aninvestment in Sheffield City Centre, which has attractive medium termredevelopment potential, and a major letting in Newcastle. In Maidenhead, Terrace Hill has exchanged contracts to acquire a site at theVanwall Business Park for £9.5m. With an expected end value of £50m, theCompany intends to develop 120,000 sq ft office space. In East Croydon, Terrace Hill has exchanged contracts to acquire a site inGeorge Street opposite East Croydon railway station for £4m. It will develop130,000 sq ft office space with some retail on the ground floor; the scheme hasan expected end value of £45m. Terrace Hill also focuses on acquiring income producing investments withredevelopment potential. In Sheffield city centre it has acquired Castle GateHouse for £7.3m in a joint venture with Tyburn Lane Properties acting for AngloIrish Private Property Fund. The building, let to BHS, has medium termdevelopment potential for a mixed use scheme including retail, residential,health and fitness, etc. In Newcastle, Terrace Hill has pre-let half of its 83,000 sq ft Time Centraldevelopment in the city centre to Robert Muckle firm of solicitors.Construction will commence on the site later this month. Managing Director Philip Leech said: "I am pleased with this major expansion inour development programme as a result of the acquisition of the sites atMaidenhead and East Croydon. The letting at Time Central is excellent news asthat now justifies us commencing this 83,000 sq ft scheme in the middle ofNewcastle. Our development programme now stands at around £900m, £335m of whichis underway. The key focus of our commercial investment activity is theacquisition of property investments with development potential - Castle GateHouse, Sheffield is a fine example. "I remain confident that Terrace Hill will continue to deliver healthy returnsand look forward to further updating shareholders when we announce our finalresults shortly." Properties and development referred to herein include those in JV as well as ofTerrace Hill alone. For further information please contact: Philip Leech, Group Managing Director Tel: 01642 243444Alasdair Robinson, Noble & Company Limited Tel: 0131 225 9677Isabel Crossley, St Brides Media & Finance Ltd Tel: 020 7242 4477 Notes to editors: Terrace Hill Group PLC is an AIM traded Property Group with NAV £74 million. Ithas two divisions, Commercial Development throughout the UK and ResidentialInvestment and Development in Scotland and the North of England, with adevelopment programme of around £900 million with £335 million underway.Terrace Hill reported an increase of over 25% in both NAV and pro-forma TripleNAV to 38.12p per share and 39.99p respectively in the year to 31 October 2004,and an increase in final dividend from 0.15p per share to 0.50p per share.Further increases to 39.66p per share and 44.02p per share respectively togetherwith an interim dividend of 0.5p per share (previous interim dividend of 0.3pper share) were announced with the Group's half yearly report to 30 April 2005. This information is provided by RNS The company news service from the London Stock Exchange