Acquisition (Lancaster Gate)

Northacre PLC
24 July 2006


24 JUL 06


                                 NORTHACRE PLC

                           75 - 89 LANCASTER GATE, W2


Further to their announcement of 1st February 2006, Northacre PLC confirms
today, that in a second joint venture with Minerva PLC, they have completed the
acquisition of the freehold vacant, former Thistle Hotel, at 75 - 89 Lancaster
Gate, London, W2. The property includes the benefit of a planning consent for
the conversion of the listed building into 124 prime residential apartments with
underground parking.


The structure of the transaction comprises equity from the joint venture
partners together with senior debt facilities secured with Deutsche Postbank.
Northacre's equity commitment requires £1,750,000 to be invested, £500,000 to be
paid on completion and the balance in equal instalments over the life of the
project. In return, Northacre's involvement will include fee income from
Development Management and Architectural Services, as well as an entitlement to
profit share, ranging from 5% to 50%, dependant upon the performance of the
development returns.


Commenting on today's announcement, John Hunter, Chief Executive of Northacre
PLC, said:


'This important terrace overlooking Hyde Park represents another exceptional
opportunity for The Group, with their partners Minerva PLC, to deploy their
residential development skills for generating added value and profits. For a
Central London market short of supply, The Lancasters is a natural successor to
our Revival style prime residential schemes at The Bromptons and The
Phillimores'.



Enquiries:


Northacre PLC 020 7349 8000


John Hunter Chief Executive

Manish Santilale Finance Director






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