Letting - Baltic Business Qtr

RNS Number : 8963V

Terrace Hill Group PLC

03 June 2008

 



Terrace Hill Group plc ('Terrace Hill' or the 'Group')

TERRACE HILL LETS 100,000 SQ FT AT
BALTIC BUSINESS QUARTER, GATESHEAD

Terrace Hill Group plc (AIM: THG), the AIM-listed property group, is pleased to announce that it has successfully let more than 100,000 sq ft of office space at its £300 million Baltic Business Quarter scheme in Gateshead to nPower, the major UK energy provider.

nPower has signed a lease for 110,000 sq ft at a rent of £17 per sq ft, spread over three office buildings, generating an annual income of £1,870,000. In addition, nPower has an option to lease a further 80,000 sq ft at the development.  

Terrace Hill began development works to create the 50-acre Baltic Business Quarter in partnership with Gateshead Council in October 2004. The ten-year programme will see the development of 1.5 million sq ft of offices with ancillary retail space, located in Gateshead's rapidly growing business district. Its out-of-town business park specification, set within an urban location, is continuing to attract good levels of interest from local, national and international occupiers. The Baltic Business Quarter is expected to generate up to 7,000 new jobs when development works are completed and the nPower lease will create 900.  

Commenting on the letting to nPower, Philip Leech, Chief Executive of Terrace Hill, said: 

'This is a very significant milestone for the Baltic Business Quarter and a strong endorsement of the development's quality by a prestigious tenant. It is also very encouraging to observe that, in spite of more challenging market conditions, there continues to be good levels of occupier demand for high quality office space in strong locations and, in particular, demonstrates that our combination of quality and value is proving to be attractive to major occupiers.

'Through our experience of developing high quality space in some of the UK's major regional centres, we have identified an opportunity to create a commercial scheme of international standard, which we believe will provide Gateshead with a thriving quarter, which will enhance its reputation as a leading regional business centre.'

Julie Jaglowski, npower's Residential Customer Services Director, commented: 

'npower have been impressed by the location and opportunities within Gateshead - over the last year, we have looked at many alternative sites in the area trying to find the right combination of location, building design, use of space and working environment fitting for a successful and leading energy company and our people. We believe that the Baltic Business Quarter fulfils our needs and we look forward to the time when we move in.'

The letting to nPower follows the forward sale of Chalk Hill Place, a 19,500 sq ft office building to the Open University for £5.2m.  Development works on the building are nearing completion and the Open University is expected to take occupation during summer 2008.

Mick Henry, the leader of Gateshead Council, added:

'We are delighted to welcome nPower to the Baltic Business Quarter scheme.  We've worked hard to promote Gateshead as an international investment opportunity and we always intended our cultural developments on Gateshead Quays to act as a trigger to encourage private-sector investment in Gateshead.  nPower's decision to locate here proves that our efforts to create the right conditions for private sector investment are bearing fruit.'

The agents for the development are the Newcastle office of Sanderson Weatherall and DTZ.

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

Terrace Hill                                         Tel: [phone]
Philip Leech, Chief Executive

Oriel Securities Limited                      Tel: [phone]
Scott Richardson Brown/Luke Webster

Financial Dynamics                             Tel: [phone]
Stephanie Highett/Richard Sunderland

Notes to editors

Terrace Hill Group PLC is an AIM-listed property group with three key divisions:
Commercial Development, Residential Investment and Development and House
Building. It has a total development programme of £1.3 billion. 

 

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