ROBERT Adair, the chairman of Glasgow-based Terrace Hill, sounded a rare note of confidence in the property sector saying he is prepared to invest more of his own money to do "pretty significant deals".
On the day the Aim-listed property group revealed interim profits had fallen by two thirds to £4.4 million, Adair, who owns more than 60 per cent of the shares, said Terrace Hill was prepared to raise cash through new debt facilities or a rights issu
e, to do deals.
"We're in a very good position to deals when it is sensible to do deals," he told The Scotsman.
While Adair predicted there would be more pain in the short term, Terrace Hill is expecting to use weakness in the sector to grow the business through corporate acquisitions.
There are no deals on the table, but Adair confirmed he was prepared to invest more in the company himself and believed other large shareholders would also support the plan.
The chairman predicted that as values fell and companies are forced to write down asset values, banks would eventually be forced to call in debts when cash runs out, and suggested Terrace Hill would be waiting. But Adair admitted that the bottom of the cycle was increasingly difficult to call.
"Not long ago I thought possibly towards the end of this year. Now I think perhaps the end of this year or longer. A lot depends on the banking cycle," he added.
Profits sank as the value of its residential investments fell in the six months to 30 April.
Terrace Hill has shelved plans to float its Scottish house building business, Clansman Homes, and has effectively abandoned expansion plans, building property only where it can ensure a quick sale.
The full article contains 297 words and appears in The Scotsman newspaper.
