Re-Development

Northacre PLC
05 November 2007


                                 NORTHACRE PLC                                  
                         ('The Company' or 'The Group')                         
                                                                                                                        
                                     
                         WEST LONDON TELEPHONE EXCHANGE                         

                                                                                

Northacre Plc announces today that in a joint venture with Bomac Developments
(UK) Limited they have exchanged contracts on the site known as West London
Telephone Exchange, Warwick Road, London W14 for £67.0m. The contract has the
benefit of a delayed completion until December 2008.

The structure of the acquisition comprises equity from the joint venture
partners of which Northacre's commitment is £600,000 representing 5% of the
total equity requirement. In return Northacre will receive Development
Management fee income together with 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 acquisition represents another opportunity for Northacre. We look forward
to working with our partners, Bomac Developments, in developing this scheme and
deploying our extensive Group skills for generating added value from this
strategic site in the Royal Borough of Kensington of Chelsea.'

 



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