Terrace Hill Group plc (AIM: THG), a leading UK property development and investment group, announces that, in a new funding and development joint venture with Peveril Securities, it has purchased the Heaton Retail Park in Manchester from Standard Life Investments for £5.7 million.
The park, which has an unrestricted Open A1 planning consent, has been acquired with a view to looking at future redevelopment opportunities.
Heaton Retail Park is a 43,000 ft² (approx. 4,000 m²) scheme which is adjacent to an existing 80,000 ft² Sainsbury's and is currently let to Wickes, DSG International PLC (trading as Dixons) and American Golf.
Philip Leech, Chief Executive of Terrace Hill, commented: "The purchase of Heaton Retail Park represents an opportunistic buy of stock with the potential for redevelopment in the forthcoming years. This purchase underscores our capabilities and our growing presence in this specialist market. We will continue to look for other similar opportunities to create value by utilising our UK-wide team and by progressing our business model of working with joint venture partners. At the same time we are making good progress with lettings and asset management at our other projects, as evidenced by our recent announcements."
Ralph Jones, Managing Director of Peveril Securities, added: "We are delighted to be working with Terrace Hill on this project, using their team's undoubted expertise in the sector and in development, together with our financial strength, to produce an ideal combination for the benefit of the joint venture."
Duncan McEwan, Retail Director of Terrace Hill, added: "We already have a good understanding of current retailing requirements and working closely with retailers allows us to identify these sort of opportunities, underlining our expertise in this sector. Our focus now turns to the next stage of the process where our discussions with City of Manchester are well underway and we are confident of submitting planning applications later this year."
Terrace Hill has recently received planning permission for two supermarket development schemes with Sainsbury's at Helston in Cornwall and Bishop Auckland in County Durham. These, together with already completed retail developments at Blyth and Galashiels in the past few years, enforces the Company's growing presence as a specialist retail developer alongside its already well established reputation as an office and business space development expert.
Knight Frank and Clyde & Co acted for Terrace Hill and Peveril as agents and lawyers respectively. Edgerley Simpson Howe acted for Standard Life.