Re Joint Venture

RNS Number : 8780G

Terrace Hill Group PLC

19 May 2011

 



TERRACE HILL GROUP PLC

("Terrace Hill" or the "Company")

19 May 2011

Terrace Hill Group plc (AIM: THG), a leading UK property development and investment group, announces that one of its joint ventures, Two Orchards Limited, has been placed into administration.  Two Orchards Limited developed the Maxis office scheme in Bracknell, which consists of two completed, but vacant, grade A office buildings totalling 194,000 sq ft and planning consent for a further building of 79,000 sq ft.

Terrace Hill fully provided for its equity in this joint venture in 2008.  The Company also provided £1 million in its 2010 accounts in respect of a £3 million interest shortfall guarantee related to the loan to Two Orchards Limited and will provide for the balance of this liability in its 2011 accounts.  The Company has no other obligations towards Two Orchards Limited and this administration has no impact on the Company's other banking relationships.

-Ends-

For further information please contact:

Philip Leech/Jon Austen                                                                         Tel. [phone]

Terrace Hill Group PLC

David Arch/Gareth Price                                                                         Tel: [phone]

Oriel Securities Limited

(Nominated Adviser and Broker)

Richard Sunderland/Olivia Goodall/Will Henderson                                    Tel: [phone]

Financial Dynamics                                                                               [e-mail]

Notes to editors:

Terrace Hill Group PLC is a regionally based UK property development and investment group quoted on AIM, with two key divisions:

§ Commercial development

§ Residential investment.

Formed in 1986, the Company has five offices located in London, Glasgow, Teesside, Bristol and Manchester, managing a commercial development programme and a residential investment portfolio.

 

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