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19 Jun 2015 10:19
Northacre PLC
("Northacre" or the "Company")
Appointment as Development Manager
Northacre is pleased to confirm that it has entered into a Development Management Agreement with BL Development ("BL Development") under which the Company will be the Development Manager for 10 Broadway in London until 31st December 2016 with the opportunity to be extended thereafter.
Under the terms of the Development Management Agreement, the Company will be entitled to a fixed development management fee and a performance fee.
BL Development is a Jersey-based special purpose vehicle established to acquire the building at 10 Broadway, London. 10 Broadway is the current headquarters of New Scotland Yard. The current use of the property is office and planning approval will be sought in order to create a mix use scheme. BL Development is ultimately owned by the Abu Dhabi Financial Group ("ADFG"). ADFG is the ultimate parent undertaking of Spadille Limited, the Company's majority shareholder and Jassim Alseddiqi, a director of the Company is a director of ADFG and Spadille Limited. Mustafa Kheriba is also deemed to be a related party of ADFG. As a consequence, entering in to the Development Management Agreement is a related party transaction for the purposes of the AIM Rules. The independent directors consider, having consulted with finnCap Limited, that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.
Niccolò Barattieri di San Pietro, Chief Executive Officer, commented:
"10 Broadway's enviable location, and far reaching views, coupled with Northacre's track record of delivering unparalleled developments will ensure this will be the leading high end mix use development in Prime Central London."
Northacre's development team are fully committed to replicating the success of our past landmark developments and to achieving the Northacre premium and substantial value creation in relation to the 10 Broadway development. We intend to build upon this opportunity and continue to actively pursue further developments."
Enquiries:
Northacre PLC Tel: 020 7349 8000
Klas Nilsson (Non-Executive Chairman)
Niccolò Barattieri di San Pietro (Chief Executive Officer)
finnCap Ltd Tel: 020 7220 0500
Stuart Andrews
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