Property Assets

Terrace Hill Group PLC
10 March 2006

Terrace Hill Group plc ('THG')

Proposed Acquisition of Property Assets

Undernoted is an announcement released today to the press and media by
Nationwide Building Society regarding the proposed sale of residential property
assets to Terrace Hill Residential plc, a joint venture vehicle to between THG
and Electra Private Equity plc.

A further announcement will be made in due course.

Contact:

Miranda Kelly, Residential Investment Director: Tel [phone]
Alasdair Robinson, Noble & Company, Tel [phone]

Undernote:

ANNOUNCEMENT FROM NATIONWIDE BUILDING SOCIETY ON SALE OF AT.HOME NATIONWIDE
LIMITED

Nationwide Building Society is in exclusive negotiations with Terrace Hill
Residential PLC over the sale of the property portfolio of at.home nationwide
limited, the Society's property rental subsidiary.   Nationwide has decided to
sell in order to concentrate on its core business activities.  It has been
advised by Allsop LLP in the sale.

Terrace Hill has been selected as exclusive bidder following a bidding process
which attracted several other bidders at the first stage.   Terrace Hill's bid
is a joint venture with Electra Private Equity plc.  The bid, if progressed to
contract, could lead to completion around May/June.

Under the proposed deal, at.home employees will be taken on by a new management
company set up by ARIM specifically to manage this portfolio and other property
owned by Terrace Hill.

- -ends-


Notes to editors

at.home nationwide limited is the property rental subsidiary of Nationwide
Building Society.  It has 2,243 properties in a number of British cities
including Glasgow, Edinburgh, London, Bristol, Manchester, Leeds and Birmingham.
It employs 122 people, mainly in Scotland.

Terrace Hill Group PLC is an AIM traded Property Group with NAV £76 million and
market capital over £100 million.  It has two divisions, Commercial Development
throughout the UK and Residential Investment and Development in Scotland and the
North of England, with a development programme of around £900 million with £335
million underway.  Terrace Hill reported an increase of over 20% in pro- forma
Triple NAV to 48.06p per share in the year to 31 October 2005 and a 40% increase
in final dividend from 0.5p per share to 0.7p per share.

Electra Private Equity is a £550m listed investment trust which focuses on
unquoted companies, selected and managed by Electra Partners, the fund
management specialist.  In the year to September 2005 Electra reported NAV
growth of 31% and over the 12 months to March 2006 a share price rise of over
40%, one of the highest in the investment trust sector.

ARIM (Allsop Residential Investment Management Ltd) is a residential management
business based in Leeds and Brighton and currently manages over 6,000 units
across the UK.


                      This information is provided by RNS
            The company news service from the London Stock Exchange