Thg Regulatory News (THG)

8 Feb 2007 07:01

Terrace Hill Group PLC08 February 2007 8 February 2007 Terrace Hill Group PLC ("Terrace Hill" or "the Group") Trading update Terrace Hill, the AIM-listed property group, is pleased to announce a tradingupdate prior to the announcement of its full year results to the 31 October 2006on 21 February 2007. This update includes details on the Group pre-selling alarge development in Newcastle, being appointed as the development partner for anew 80 acre business park in the South West, receiving planning consent for twolarge office developments in the South East, the purchase of a 16 acre retailand mixed use development site in Middlesbrough and a multi-let office buildingin Bristol with redevelopment opportunities. The key details for each of the Group's recent deals are as follows: • The Group has fully let and forward sold its 83,141 sq ft joint venture development, Time Central, at Gallowgate in Newcastle to a UK institution a year ahead of completion for £32.5m, representing a net initial yield of 4.52%. The price achieved is ahead of initial expectations and a record initial yield for a Newcastle office investment. • Terrace Hill has been chosen by Persimmon Homes as its preferred developer at Weston Park, a new 80 acre business park at Junction 21 of the M5 close to Weston-super-Mare. The park is part of the redevelopment of the former Weston Airfield, a mixed-use scheme where the Company has plans for up to one million sq ft of B1 office space, leisure facilities, restaurants and a hotel. Phase one of the project, which will see work commence towards the end of 2007, is for the construction of 50,000 sq ft of office space over three acres. • At Pinewood in Wokingham, the Group has received detailed planning consent for a 200,000 sq ft office building, which will be developed for Johnson & Johnson Medical as its UK headquarters. Construction is planned to start in spring 2007 and is expected to have a completed value of approximately £40m. • At Cargo Fleet Lane between Terrace Hill's Middlehaven office development and Middlesbrough's town centre, the Group has paid £8m for a 16 acre retail and mixed use development site. The site benefits from an existing planning consent for 63,000 sq ft of bulky goods retail floor space and it is anticipated that this could be extended to add additional retail space as well as leisure and car showroom uses. • At Vanwall Business Park, Maidenhead, the Group has obtained detailed planning consent for 120,000 sq ft of new offices. The development will be carried out through a joint venture between Terrace Hill and clients of Jones Lang LaSalle Corporate Finance. The site, which was purchased for £9.3m, has been sold to the JV for £17.85m. Terrace Hill retains a 50% stake in the JV. • In Bristol the Group has contracted to purchase Canningford House at 38 Victoria Street, a multi-let office investment comprising 20,456 sq ft in a prime city centre location for £2.5m. The property provides an excellent opportunity for redevelopment in medium term. • All 38 of the private and affordable residential units at Davis House, Victoria, the Group's £85m mixed use scheme, have been forward sold for £14.5m. The development is due for completion towards the end of 2007. Group Managing Director, Philip Leech, said, "We have had an excellent start to2007. The sale and two planning consents have realised values in excess ofinitial expectations and the development sites at Weston Park, Middlesbrough andBristol add considerably to our strategic landbank and future flow ofdevelopment projects." Chairman, Robert Adair, said, "I am delighted with these excellent deals whichgive me confidence for our prospects for the current financial year. We lookforward to the release of our results for the year to October 2006 which will bereported on 21st February." * * ENDS * * For further information visit www.terracehill.co.uk or 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 - AIM-listed property group with two key divisions,Commercial Development and Residential Investment and Development and a totaldevelopment programme of £1.1bn and a market capitalisation in excess of £200m. This information is provided by RNS The company news service from the London Stock Exchange