14th Jun 2007 07:01
Terrace Hill Group PLC14 June 2007 14 June 2007 Terrace Hill Group PLC ("Terrace Hill" or "the Group") Trading Update Terrace Hill, the AIM-listed property group, is pleased to announce that it hasmade strong progress in recent months having concluded a number of substantialproperty transactions and development initiatives primarily in the South ofEngland. The Group recently raised £25m through a share placing to new andexisting institutional investors, which is already being utilised to expand thebreadth of the Group's portfolio. This update includes details on theacquisition of a site in Southampton City Centre, receipt of planning consentfor an office development in Croydon and a pre-letting at its office developmentin Covent Garden. The key details for each of the Group's recent transactions are as follows: • The Group has acquired a prominent 1.7 acre site in Southampton City Centre opposite the railway station for £7.4m. The development of 'Mayflower Plaza' is expected to have an end value of around £70m and is scheduled for completion in early 2010. The development will comprise 180 residential units, a 150 bedroom hotel and 105,000 sq ft offices. • At George Street, Croydon, opposite East Croydon railway station, the Group has received detailed planning consent for a 204,000 sq ft 14-storey office building. Construction is planned to start in late 2007 and is expected to have a completed value of approximately £100m. As the first substantial new office building to be developed in Croydon for many years, considerable tenant interest is already being generated. • At Kean House in Covent Garden, the Group has pre-let a quarter of the 24,600 sq ft office development to Adecco and is advanced negotiations with other potential tenants for the remaining space at rents ahead of initial expectations. The development is expected to be complete in July 2007 with an end value of approximately £22.3m. Group Managing Director, Philip Leech, said, "The recent share placing hasincreased our available capital for the acquisition of new sites such asMayflower Plaza in Southampton and will also allow us to hold and add value toother existing sites prior to placing them in financial joint ventures. Wecontinue to experience strong demand from joint venture partners and occupiersfor our developments, enhancing the returns to our shareholders. We remainconfident that the Group's current growth will continue and will be reflected inour forthcoming interim results." The Group is announcing its results for the six months ended 30 April 2007 onWednesday 4 July 2007. An analyst briefing will be held at 10.00 a.m. on 4 July2007 at the offices of St Brides Media & Finance Ltd, 3rd Floor, AldermaryHouse, 10-15 Queen Street, London EC4N 1TX. * * 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 is an AIM-listed property group with three key divisions:Commercial Development, Residential Investment and Development and HouseBuilding. It has a total development programme of £1.1bn and a marketcapitalisation in excess of £200m. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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