UK's first real estate trusts will be offered by Terrace Hill

UK's first residential Reits - real estate investment trusts could be set up by the AIM-listed property group Terrace Hill. After Chancellor Gordon Brown's Pre-Budget Report in December, Listed Reits were drafted.

Terrace Hill bought £273 million portfolio of homes from the Nationwide Building Society. This will set up a new associate in business Terrace Hill Residential. This will hold 2253 properties.

The vehicle took an 85% debt. Chairman Robert Adair holds the 51% of the equity in the new firm. Terrace Hill will own the remainder. Nationwide owned the homes concentrated in London and Scotland.

Terrace Hill has its name in residential property since 1986. Most of these properties are in Scotland. Philip Leech, managing director of Terrace Hill recently announced that the company is planning on turning the portfolio into a Reit.

Leech also said that it was a good time to be increasing the company’s contact with the residential market with house prices and show positive outcome.

By M. Sese
Miami Real Estate Agent