Developer Terrace Hill Group has reported interim pre-tax losses of £30.8 million after write-downs for its property portfolio.
The deficit compares to a £4.45 million profit in the same period last year. Operating profit, which strips out write-downs, was £1.1 million in the six months to April 30, which the company said reflected a period of “limited trading activity”.
Terrace Hill specialises in upgrading commercial property sites before letting them. Highlights in the six-month period included gaining planning consent for a Sainsbury’s supermarket in Bishop Auckland, and a design centre at the Baltic Business Quarter in Gateshead.
It said it continues to operate its Clansman Homes housing business cautiously, with few new projects being started. However, Terrace Hill revealed it expects to receive planning consents for 340 properties at two housing development sites this year.
Chairman Robert Adair said: “The value of residential property continues to decline, albeit at a much slower rate than before.
“The specific locations and intentionally affordable nature of our portfolios has led to outperformance of most house price indices and I foresee stability returning as liquidity and availability of mortgage financing improves in the medium term.”