New Development Fund

Terrace Hill Group PLC
25 April 2006


25 April 2006

                    Terrace Hill Group PLC ('Terrace Hill')


                          Development Fund Established
            In Partnership with Jones Lang LaSalle Corporate Finance



Terrace Hill, the AIM-listed property group, and Jones Lang LaSalle Corporate
Finance, have established a new property development fund - Terrace Hill
Development Partnership ('THDP') - to acquire, develop and sell commercial
properties in all sectors throughout the UK.



This new fund is part of Terrace Hill's strategy of seeking ways to leverage its
equity and management expertise to enhance returns for its shareholders.



The fund was oversubscribed and raised £10 million of new equity with the
minimum investment being £50,000 for private investors and £25,000 for pension
investors.   Terrace Hill invested £2 million in the fund.



Terrace Hill has transferred interests in seven of its developments to THDP,
which have an estimated sales price of over £90 million.   Further developments
will be chosen by the board of THDP which will comprise equal numbers of
directors nominated by Terrace Hill and Jones Lang LaSalle Corporate Finance.
This partnership enables the two parties to pool expertise and skills to
identify potential development projects.



The majority of developments will each have a completed development value of
between £5 million and £20 million.  Terrace Hill will manage both the
developments and letting/sale process on THDP's behalf.  The fund will have a
minimum life of four years, after which no new developments will be acquired.
During this time investors in THDP will be entitled to a priority return equal
to 15% per annum plus a share of the profits.



Terrace Hill Managing Director Philip Leech said: 'This is a further step
forward in the growth of Terrace Hill.  The creation of THDP is part of our
strategy of expanding into asset management using our proven track record to
deliver significant returns to investors and shareholders alike.'



Julie Green, Director at Jones Lang LaSalle Corporate Finance, said:  'The aim
of THDP is to provide private investors with access to high quality property
investment opportunities, whilst providing flexible innovative financing
solutions for developers. Private investors are looking more closely at
commercial property, while property financing is evolving, resulting in this
being a fast-moving and exciting market.'



Full details of the fund including THDP's developments are available from
Terrace Hill or Jones Lang LaSalle Corporate Finance on request.



                                  * * ENDS * *



Contact:

Philip Leech, Group Managing Director                Tel: [phone]

Alasdair Robinson, Noble & Company Limited           Tel: [phone]

Isabel Crossley, St Brides Media & Finance Ltd       Tel: [phone]

Julie Green, Jones Lang LaSalle Corporate Finance    Tel: [phone]





Notes to editors



Terrace Hill Group PLC - AIM-listed property group with a Triple Net Asset Value
of £89.985 million.  It has two divisions, Commercial Development and
Residential Investment and Development, with a total development programme of
around £900 million.  Terrace Hill reported an increase of over 20% in pro-forma
Triple NAV to 48.06p per share in the year to 31 October 2005, and a 40%
increase in final dividend from 0.5p per share to 0.7p per share.



Jones Lang LaSalle Corporate Finance Limited - a subsidiary of Jones Lang
LaSalle Incorporated, authorised and regulated by the FSA, which specialises in
most aspects of investment banking and structured finance for commercial real
estate, including corporate and project equity raising, mergers and
acquisitions, indirect property investment vehicles, joint ventures and securing
structured and senior debt.



Jones Lang LaSalle

Jones Lang LaSalle (NYSE: JLL) has more than 100 offices worldwide and operates
in more than 430 cities in 50 countries.  With 2005 revenues of approximately
$1.4 billion, the company provides comprehensive integrated real estate and
investment management expertise on a local, regional and global level to owner,
occupier and investor clients. Jones Lang LaSalle is an industry leader in
property and corporate facility management services, with a portfolio of 923
million square feet worldwide. In 2005, the firm completed capital markets sales
and acquisitions, debt financings, and equity placements on assets and
portfolios valued at $43 billion. LaSalle Investment Management, the company's
investment management business, is one of the world's largest and most diverse
real estate money management firms, with approximately $30 billion of assets
under management. For further information, please visit www.joneslanglasalle.com





                      This information is provided by RNS
            The company news service from the London Stock Exchange