RNS Number:0191Y
Terrace Hill Group PLC
27 April 2004




For embargoed release 7a.m.                                      27 April 2004


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

         Trading Update- Significant Progress on Development Programme


Newcastle Upon Tyne

Terrace Hill, with their joint venture partners Gallowgate Properties, are about
to submit a detailed planning application for an 83,000 sq ft head quarters
office development at Gallowgate in the heart of Newcastle's city centre. The
development which is expected to achieve rents close to #20 per square foot has
been designed over 7 storeys and to a high BCO specification. The Gallowgate
area of the City has fast established itself as the new business district in
Newcastle with recent lettings in the vicinity to Government Office North East,
Deloitte and Grainger Trust PLC. Terrace Hill is building on its recent success
in the area, where it developed the Cube, a 24,000 sq ft office development,
which was sold on completion to Newcastle solicitors, Sintons.

Elsewhere in the area Terrace Hill is looking forward to the start on site in
June of Baltic Business Park on the Gateshead Quays. This 50 acre site has
planning consent for 1.5m sq ft of business space and is expected to be
developed out over the next 10 years.


Teeside

Westminster, Terrace Hill's latest office development (24,000 sq ft) at Teesdale
Business Park has attracted another tenant. Atos Origin, the international
business services company, has taken 8,000 sq ft at a commencing rent of #15.00
per square foot. It joins Endeavour Partnership, a regional firm of solicitors,
who recently took occupation of the top floor of the building. The ground floor
of the building remains available to let however 3 parties are currently in
competition to take the space. It is Terrace Hill's intention to sell the fully
let building within the next few months. The sale is likely to realise a net
profit (before tax) of over #1.5 million. Terrace Hill have the only remaining
office development land left at the Teesdale Business Park with consent to
develop over 150,000 sq ft of additional space.


West End, London

Terrace Hill announces that it has let 6,000 sq ft (floors 3, 4 and 5) of its
office development at 11 Berkeley Street to Regal Petroleum PLC and European
Goldfields PLC.

Terrace Hill has a significant West End development programme consisting of
14,000 sq ft at 11 Berkeley Street (Terrace Hill interest: 50%), 39,000 sq ft at
16 Berkeley Street (Terrace Hill interest: 50%) and 11,000 sq ft at King Street
(Terrace Hill interest: 42%). The Group is now seeing a considerably enhanced
level of interest in the remaining space and anticipate being able to announce
further lettings in the course of 2004. This activity should help lead to
appreciation in the value of these assets.

Robert Adair, Chairman, commented: "I am pleased with the progress our
commercial development division is continuing to make. We have a growing
development programme (#200 million in hand and a further #200 million
projected) which should make a very significant contribution to our profits over
the next few years. This should provide the potential for rapid growth in our
net asset value per share."



For further information please contact:

Robert Adair, Terrace Hill Group plc, Chairman                    01845 537 037

Ross Macdonald, Terrace Hill Group plc, Joint Managing Director   0141 332 2014

Alasdair Robinson, Noble & Company Limited                        0131 225 9677

Hugo de Salis, St Brides Media & Finance Ltd                      020 7242 4477



Notes to editors:

Terrace Hill Group plc is an AIM listed property company. It has two divisions
(i) commercial development where the current development programme shows over
#200 million in hand and a further #200 million projected and (ii) residential
investment where it has 578 units almost entirely in Scotland and the North of
England. The Group recently reported a 15% increase in the value of its
underlying investment property assets since last October. A valuation carried
out at the end of its current financial half year on 30th April 2004 reported an
uplift of at least #7m over the last reported figure of #46,634,255, or 30.3p
per share, on 31 October 2003.


END

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