Robert Adair sells residential JV

Property developer Terrace Hill is buying out a joint venture with its executive chairman, oil tycoon Robert Adair.

The Glasgow-based group will pay £5.3 million for Adair’s 51 per cent stake in Terrace Hell Residential (THR), with a view to selling off the 47 homes it owns.

Adair will still be entitled to a share of profits from the developments in Scotland, Bristol, Manchester and Minehead, but will also be liable to help meet any losses.

The Aim-quoted company said the units currently bring in around £300,000 in annual rent but will be sold on a piecemeal basis. The purchase price reflects the estimated market value of the properties.

Terrace said the deal had been necessary in order to sell the homes while still satisfying agreements with THR’s lender.

Chief executive Philip Leech said: “Following the sale of the majority of our residential assets to Places for People in February, we are very pleased to have purchased the remaining assets of THR, which facilitates a favourable negotiated settlement with the lender to THR.”

Leech expects the sale of properties to complete within 15 months.