18 Sep 2013 07:00
Northacre PLC ("Northacre" or "the Company")
Commitment to Invest
The Company announces that it has committed to invest £10 million in Palace Revive Limited.
Palace Revive Limited is a special purpose company, financed by a variety of institutional investors, established to acquire 1 Palace Street, a property on which it has exchanged a contract to purchase. Completion is expected to occur during January 2014. 1 Palace Street is a significant, partially listed building, in a prime location adjacent to Buckingham Palace. Planning permission has been granted for a residential scheme with a restaurant on the ground floor and ancillary facilities including car parking, a gym and spa (subject to the terms of the agreement entered into by the Company pursuant to Section 106 of the Town and Country Planning Act 1990).
The investment is to be funded from Northacre's current and future cash resources and it is currently intended that, following completion, Northacre will be appointed as development manager to Palace Revive Limited. It is expected that it will receive development management fees, and have a carried interest in profits accruing to Palace Revive Limited from the completed development.
Niccolò Barattieri di San Pietro, Chief Executive Officer, commented:
"I could not think of a better commencement to my tenure as CEO than with participating in the acquisition of an interest in 1 Palace Street. Securing such a significant development is a testament to the acquisition abilities of the new Northacre.
Building upon our track record of delivering unparalleled developments and creating exceptional value, we believe that 1 Palace Street will be the leading high-end residential development in prime central London for the coming years.
Northacre's management and development team are fully committed to replicating the success of our past landmark developments and to achieving the Northacre premium. 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
Henrik Persson