Terrace Hill lets over 10,000 m[sup]2[/sup] at Baltic Business Quarter

AIM-listed property group Terrace Hill has let over 10,000 m² of office space at its £300mln (EUR 380mln) Baltic Business Quarter scheme in Gateshead to nPower, the major UK energy provider. According to the company statement nPower has agreed to lease 110,000 sq ft (10,219 m2) at a rent of £17 per sq ft, spread over three office buildings, generating an annual income of £1,870,000 (EUR 2,365,000). In addition, nPower has an option to lease a further 7,400m² at the development.

Philip Leech, Chief Executive of Terrace Hill, said, 'This is a very significant milestone for the Baltic Business Quarter and a strong endorsement of the development's quality by a prestigious tenant. It is also very encouraging to observe that, in spite of more challenging market conditions, there continues to be good levels of occupier demand for high quality office space in strong locations and, in particular, demonstrates that our combination of quality and value is proving to be attractive to major occupiers.'

Terrace Hill began construction at the 20.3 hectare Baltic Business Quarter in partnership with Gateshead Council in October 2004. The ten-year programme will see the development of offices and ancillary retail space and it is expected to generate up to 7,000 new jobs when development works are completed. The nPower lease will create 900 jobs.