Update

Terrace Hill Group PLC
14 June 2007


14 June 2007

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


                                 Trading Update


Terrace Hill, the AIM-listed property group, is pleased to announce that it has
made strong progress in recent months having concluded a number of substantial
property transactions and development initiatives primarily in the South of
England. The Group recently raised £25m through a share placing to new and
existing institutional investors, which is already being utilised to expand the
breadth of the Group's portfolio. This update includes details on the
acquisition of a site in Southampton City Centre, receipt of planning consent
for an office development in Croydon and a pre-letting at its office development
in Covent Garden.

The key details for each of the Group's recent transactions are as follows:

   • The Group has acquired a prominent 1.7 acre site in Southampton City
    Centre opposite the railway station for £7.4m. The development of 'Mayflower
    Plaza' is expected to have an end value of around £70m and is scheduled for
    completion in early 2010. The development will comprise 180 residential
    units, a 150 bedroom hotel and 105,000 sq ft offices.

   • At George Street, Croydon, opposite East Croydon railway station, the
    Group has received detailed planning consent for a 204,000 sq ft 14-storey
    office building. Construction is planned to start in late 2007 and is
    expected to have a completed value of approximately £100m. As the first
    substantial new office building to be developed in Croydon for many years,
    considerable tenant interest is already being generated.

   • At Kean House in Covent Garden, the Group has pre-let a quarter of the
    24,600 sq ft office development to Adecco and is advanced negotiations with
    other potential tenants for the remaining space at rents ahead of initial
    expectations. The development is expected to be complete in July 2007 with
    an end value of approximately £22.3m.

Group Managing Director, Philip Leech, said, 'The recent share placing has
increased our available capital for the acquisition of new sites such as
Mayflower Plaza in Southampton and will also allow us to hold and add value to
other existing sites prior to placing them in financial joint ventures. We
continue to experience strong demand from joint venture partners and occupiers
for our developments, enhancing the returns to our shareholders. We remain
confident that the Group's current growth will continue and will be reflected in
our forthcoming interim results.'

The Group is announcing its results for the six months ended 30 April 2007 on
Wednesday 4 July 2007. An analyst briefing will be held at 10.00 a.m. on 4 July
2007 at the offices of St Brides Media & Finance Ltd, 3rd Floor, Aldermary
House, 10-15 Queen Street, London EC4N 1TX.


                                  * * ENDS * *


For further information visit www.terracehill.co.uk or 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-listed property group with three key divisions:
Commercial Development, Residential Investment and Development and House
Building. It has a total development programme of £1.1bn and a market
capitalisation in excess of £200m.



                      This information is provided by RNS
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