Property development firm Terrace Hill Group is gearing up to sell the assets of its residential investment business, half of which is located in the South East and London.
Ernst & Young has been brought in to manage the sale of the assets of Terrace Hill Residential. It is understood that over £180 million could be generated from a sale. The sale will enable the group to focus on its rapidly growing food store development operations and its other commercial developments.
Terrace Hill owns 49 per cent of the business, which is a joint venture with the family trusts of Robert Adair, Terrace Hill’s chairman. The property portfolio numbers 59 buildings and contains 1,434 units, mostly in unbroken stand-alone modern blocks all over Britain.
Philip Leech, Terrace’s chief executive commented on the move: “In recent years, the company has focused primarily on growing and consolidating its development business, and specifically its supermarket development platform.
“Despite the strong prospects for residential property over the medium term, we believe we can deliver far greater returns for our shareholders from our foodstore development business.”
The food stores being built are located in areas including Sunderland, East Cleveland and Middlesbrough. Demand for new stores from all the major supermarket operators has increased through the economic downturn.
