Planning recommendation for new foodstore

12 November 2013

TERRACE HILL GROUP PLC

("Terrace Hill" or the "Company")

TERRACE HILL WINS PLANNING RECOMMENDATION FOR NEW FOODSTRE AND LEISURE SCHEME IN MIDDLESBROUGH

Terrace Hill Group plc (AIM: THG), a leading UK property development and investment group, announces that Middlesbrough Council's Planning Committee has endorsed planning officers' recommendation to approve three planning applications submitted by the Company, the first two of which relate to a new 80,000 sq ft Sainsbury's foodstore, a petrol filling station, together with a KFC Drive thru, Coffee shop and a Marston's family restaurant at Gateway Middlehaven. The relocation will release the existing Sainsbury's store for redevelopment, which was the subject of the third application for the creation of nine retail and leisure units, an 80 bed hotel and a coffee shop, integrating into the existing town centre.

In addition to being conditional on the execution of a Section 106 agreement with Middlesbrough Council and because the recommendation is outside of the local planning policy, the applications are now subject to referral to the National Planning Casework Unit on behalf of the Secretary of State for Communities and Local Government Secretary of State.

Philip Leech, Chief Executive Officer of Terrace Hill, said: "The decision by Middlesbrough Council's strategic planning committee to endorse this planning application is another significant step towards the delivery of this important project which will bring over 800 new full and part time jobs to the area. Subject to final planning approval, we are targeting a start on site in the first half of next year with completion approximately a year thereafter."

For further information, please visit www.terracehill.co.uk or contact:

Terrace Hill Tel: 020 7631 1666Philip Leech/Jon Austen

FTI Consulting Tel: 020 7831 3113Richard Sunderland/Will Henderson/Nick Taylor

terracehill@fticonsulting.com 

Oriel Securities (Nominated Adviser) Tel: 020 7710 7600

David Arch

Mark Young

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.