Terrace Hill to raise £170 million to fund major deal

Glasgow-based property developer Terrace Hill has announced plans to raise £170 million to fund a major acquisition deal and boost the development of its current commercial projects.

Terrace Hill, controlled by oil industry entrepreneur Robert Adair, has agreed to acquire London-based rival property developer Urban & Civic in a reverse takeover deal worth around £95 million.

The AIM-listed company added that another £50 million of the proceeds would be used to further develop Urban & Civic's sites in Rugby and Cambridgeshire. The remaining amount of around £30 million would be spent towards the development of the company's current commercial projects. The merged entity also plans to buy plots of land for residential properties in prime locations and then sell them to house builders.

Adair, who is the executive chairman of Terrace Hill, said he could not have wanted for better outcome as local economies & real wages outside London had started recovering, promising strong business.

Announcing the company's fund-raising plans, he said, "I could not have wanted for a better and more promising outcome. As local economies and real wages outside central London begin to recover, the new business has good momentum . to take us forward."

The oil tycoon expressed hope that the company's greater visibility and improved liquidity in the main market would prove beneficial to shareholders.

The planned fundraising will be carried out through a placing of 75.6 million shares at a price of 225p apiece, after a share consolidation.