RNS Number:1270P
Terrace Hill Group PLC
21 July 2005


            Terrace Hill Group PLC ("Terrace Hill" or "the Company")

                      Trading Update - Busy Third Quarter


Terrace Hill has made significant progress in its third quarter of its financial
year, with a flurry of activity in July.

On 19 July 2005 Terrace Hill sold the high quality new office development 16
Berkeley Street, Mayfair, London developed in joint venture to private investors
at a price of #39.4 million.  Terrace Hill's share exceeds its recently revalued
carrying value by #1.9 million.  The proceeds, due in cash on completion on 25
August 2005, will be used to repay project specific borrowings and as working
capital as Terrace Hill continues to expand its development programme.  Having
been held as an investment, the sale of Terrace Hill's interest is a substantial
transaction in terms of the AIM Rules.  The nine storey development, managed by
Terrace Hill since completion in 2003, has been fully let to nine tenants,
mostly in the financial sector, to provide a gross rental of #1.9 million.

Terrace Hill sold its 156,000 sq. ft. mixed industrial property at Powerhub
Business Centre, Maidstone, Kent on 13 July 2005 to private investors for #6.4
million.  This was its recently revalued carrying value.  Acquired as part of
Grosvenor Land Holdings PLC ('Grosvenor') last year, the discount to the value
at which it was acquired has been carried as negative goodwill and is now
released to the benefit of Terrace Hill's profit and loss account.

Terrace Hill's expanding interests, partly direct, and partly in joint venture,
in an increasing land bank with residential development prospects in Central
Scotland has also been increased this month.  The Company has agreed to acquire
22 acres of brownfield site, nearly all already vacant, in a location which is
being increasingly developed for Edinburgh commuters.

The quarter had begun with the sale of another, smaller, Grosvenor property,
Powerhub Business Centre in Manchester for #4 million.  Furthermore, Terrace
Hill has been included in a short list of four developers for Tees Valley
Regeneration's #300 million North Shore development on Teeside.

Managing Director Philip Leech said "The investment market has been particularly
strong recently; hence our decision to sell 16 Berkeley Street, which we had
previously held as an investment and managed most satisfactorily.  At the same
time we have made a profit on the resale of the Grosvenor property in Maidstone.
"

"While it is encouraging to see developments in which we have put much work
brought to fruition profitably, it is also good to increase our scope for
further expansion.  The brownfield site in West Lothian offers considerable
potential and we continue to explore other possible acquisitions."


                                  * * ENDS * *


For further information please contact:

Philip Leech, Group Managing Director, 01642 243 444
Ross Macdonald, Deputy Chairman, 0141 332 2014
Alasdair Robinson, Noble & Company Limited, 0131 225 9677
Isabel Crossley, St Brides Media & Finance Ltd, 020 7242 4477


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 almost #600 million with approaching #200 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 are 39.66p per share and 44.02p per share
respectively together with an interim dividend of 0.5p per share (previous
interims 0.3p) 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
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