Re: Planning

RNS Number : 1764P

Terrace Hill Group PLC

20 March 2009

 



20 March 2009

TERRACE HILL GROUP PLC

('Terrace Hill')

TERRACE HILL GROUP ACHIEVES RATIFICATION OF
PLANNING CONSENTS AT TWO SCHEMES

Planning consents ratified for two Sainsbury's food stores - in Bishop Auckland, Co Durham and in Helston, Cornwall 

Update on Baltic Business Quarter

Terrace Hill Group plc (AIM: THG), a leading UK property development and investment company, announces that it has had the planning consents for its retail and leisure scheme at  Bishop Auckland and its Sainsbury's foodstore development in Helston, Cornwall, confirmed by the Government Offices for the North East and South West respectively, and ratified by the Secretary of State for Communities and Local Government. As a result, both schemes will now proceed during the course of the next few months.

 Bishop Auckland, Co Durham

In Bishop Auckland, Terrace Hill will regenerate land that has been vacant and derelict since the closure of the Warner Electrics facility in 2003 and deliver a 150,000 sq ft retail and leisure park, together with a new stadium for Bishop Auckland FC. The scheme will create approximately 1,000 jobs both during the development phase and once it is fully operational.  

The park will include a new 90,000 sq ft Sainsbury's food store, a 58,000 sq ft leisure complex, two restaurants and a brand new Northern Premier League standard stadium for Bishop Auckland Football Club.

 Helston, Cornwall

In Helston Terrace Hill has successfully achieved planning for a 55,000 sq ft Sainsbury's food store with petrol station.  Sainsbury's will retain the freehold of the scheme.

Baltic Business Quarter, Gateshead

At its Baltic Business Quarter scheme in Gateshead, Terrace Hill also announces that the pre-let to Npower will not proceed. The adverse movement of investment yields since the pre-letting was agreed has meant the project would not be profitable and, as a result, Terrace Hill has decided to postpone this phase of the development until an alternative profitable pre-let has been secured. The Baltic Business Quarter remains very attractive to occupiers and it is already home to Gateshead College's 180,000 sq ft facility and the regional headquarters of the Open University.  Terrace Hill continues to work on a number of further potential pre-let opportunities, on terms that reflect current values and which should produce healthy margins.

Commenting, Philip Leech, Chief Executive of Terrace Hill, said:

'We are delighted to have received planning for both of the foodstore developments.  Our skill in identifying under-utilised sites for much higher value uses and the value we add through the planning process lies at the heart of our business. These schemes will have a positive impact on our Net Asset Value in the coming year and we have a number of other foodstore developments under negotiation, which should add significantly to the growth of our business in the future. These schemes and the other pre-let development opportunities that we are currently working on demonstrate that we can continue to add value despite a difficult economic background.

'Our original strategy for the Baltic Business Quarter remains firmly in place and we continue to see ongoing good levels of interest from local, national and international occupiers.

'The foodstore transactions and other pre-let development negotiations demonstrate that we can continue to add value to the business despite difficult economic conditions.'

ENDS

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

Terrace Hill                                                                   Tel: [phone]
Philip Leech

Financial Dynamics                                                       Tel: [phone]
Richard Sunderland / Rachel Drysdale / Jamie Robertson    [e-mail]

Oriel Securities                                                              Tel: [phone]

Richard Crawley / Daniel Conti

 

END

 

 

MSCJLMRTMMJBBRL