Terrace Hill ponders fund launch

Property group Terrace Hill is ‘actively considering’ launching a residential fund after trimming annual losses to £27 million.


Property group Terrace Hill is ‘actively considering’ launching a residential fund after trimming annual losses to £27 million.

Property group Terrace Hill is ‘actively considering’ launching a residential fund after trimming annual losses to £27 million.

Chaired by entrepreneur Robert Adair, the Glasgow-based company, which has lately exchanged contracts to acquire supermarket development sites in Sunderland and Shropshire, saw net assets slide 23.5 per cent to 40.8p a share in the year to last October. But the second half of the year brought an upturn and Adair declares, ‘I view the future with considerably more confidence than I did a year ago’.

AIM-quoted Terrace Hill’s net debt rose by £12.3 million to £98.1 million in 2008-09 and year-end cash fell from £18 million to £5.3 million, while its loan-to-value ratio increased from 45.7 to 59.4 per cent. The company completed or contracted sales of £56.1 million and contracted lettings with an annual rent roll of £3.6 million.

Late last year, Terrace Hill fixed £28 million of forward financing for a Sainsbury store in Co. Durham, won planning consent for 135,000 sq ft of offices and 33 flats near Victoria in London and arranged £39.3 million of debt refinancing, taking its re-financings since October 2008 to £335 million. In December, the company sold its Kean House office scheme in London’s Covent Garden for £16 million.

Adair says Terrace Hill’s residential portfolio continues to outperform industry benchmarks. He reveals the company is now seriously contemplating the launch of a residential fund, ‘which has the potential to provide further scope to create value’.

Nick Britton

Lexus Ernser

Nick was the Managing Editor for growthbusiness.co.uk when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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