Resi sales reduce Terrace Hill debt

Terrace Hill has cut its gearing after raising cash from the sale of its remaining residential assets and a flagship student housing project.

The developer is to sell 925 homes for £70m, close to book value, to Places for People.

And with joint-venture partner Osborne Group it has forward funded a 1,104-unit student accommodation scheme in Southampton with Legal & General Property.

The completed value is expected to be £91m, based on a pre-let to Southampton University on a 38-year lease without breaks, and RPI-linked uplifts.

The proceeds will be used to cut debt to £20.2m, a reduction in gearing from 78.2% to 34.6%.