Trading update

Terrace Hill Group PLC
17 January 2006


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


                                 Trading Update


Terrace Hill, the AIM-listed property group, is pleased to announce the
acquisition of two significant development opportunities in the South East, an
investment in Sheffield City Centre, which has attractive medium term
redevelopment potential, and a major letting in Newcastle.

In Maidenhead, Terrace Hill has exchanged contracts to acquire a site at the
Vanwall Business Park for £9.5m.  With an expected end value of £50m, the
Company intends to develop 120,000 sq ft office space.

In East Croydon, Terrace Hill has exchanged contracts to acquire a site in
George Street opposite East Croydon railway station for £4m.  It will develop
130,000 sq ft office space with some retail on the ground floor; the scheme has
an expected end value of £45m.

Terrace Hill also focuses on acquiring income producing investments with
redevelopment potential.  In Sheffield city centre it has acquired Castle Gate
House for £7.3m in a joint venture with Tyburn Lane Properties acting for Anglo
Irish Private Property Fund.  The building, let to BHS, has medium term
development potential for a mixed use scheme including retail, residential,
health and fitness, etc.

In Newcastle, Terrace Hill has pre-let half of its 83,000 sq ft Time Central
development in the city centre to Robert Muckle firm of solicitors.
Construction will commence on the site later this month.

Managing Director Philip Leech said: 'I am pleased with this major expansion in
our development programme as a result of the acquisition of the sites at
Maidenhead and East Croydon. The letting at Time Central is excellent news as
that now justifies us commencing this 83,000 sq ft scheme in the middle of
Newcastle. Our development programme now stands at around £900m, £335m of which
is underway.  The key focus of our commercial investment activity is the
acquisition of property investments with development potential - Castle Gate
House, Sheffield is a fine example.

'I remain confident that Terrace Hill will continue to deliver healthy returns
and look forward to further updating shareholders when we announce our final
results shortly.'

Properties and development referred to herein include those in JV as well as of
Terrace Hill alone.


For further information please contact:

Philip Leech, Group Managing Director                    Tel: [phone]
Alasdair Robinson, Noble & Company Limited               Tel: [phone]
Isabel Crossley, St Brides Media & Finance Ltd           Tel: [phone]


Notes to editors:

Terrace Hill Group PLC is an AIM traded Property Group with NAV £74 million.  It
has two divisions, Commercial Development throughout the UK and Residential
Investment and Development in Scotland and the North of England, with a
development programme of around £900 million with £335 million underway.
Terrace Hill reported an increase of over 25% in both NAV and pro-forma Triple
NAV to 38.12p per share and 39.99p respectively in the year to 31 October 2004,
and an increase in final dividend from 0.15p per share to 0.50p per share.
Further increases to 39.66p per share and 44.02p per share respectively together
with an interim dividend of 0.5p per share (previous interim dividend of 0.3p
per share) were announced with the Group's half yearly report to 30 April 2005.




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