RNS Number:2131L
Northacre PLC
16 May 2003

                                NORTHACRE PLC
                         ("Northacre" or "the company")

                           ACQUISITION, DISPOSAL AND
                           DEVELOPMENT FUND RAISING


Northacre PLC announces the acquisition of Vicarage Gate House in a new joint
venture single purpose vehicle sponsored by Bahrain based First Islamic
Investment Bank ('FIIB').  This derelict former nursing home is in Kensington
London, backing onto Kensington Palace Gardens. It is the joint venture's
intention to submit a planning application to demolish the existing building
enabling a substantial new prime residential development.

The structure of the acquisition resulted in an initial payment of #7 million
for the site with an additional deferred consideration dependent on the outcome
of planning and sales revenues.  Northacre has a 10% equity interest in Vicarage
Gate Limited, with their interest being subject to a substantial performance fee
on the successful conclusion of the scheme.  Through its operating subsidiaries,
Northacre has entered into contracts for Development Management as well as
Architectural and Interior Design services.

Northacre PLC also announces the sale of its interest in The Phillimores
development to Westcity (QEC) Limited (Joint Venture Partner) for #5.4 million
cash (book value #5.4 million) less interest owed to Westcity (QEC) Limited of
#382,000.  In addition, it is also agreed that Northacre will be entitled to a
deferred consideration of a maximum of #2.75 million dependent on the sales
proceeds generated by the completed QEC part of The Phillimores development.
Northacre will also continue in its appointment with Westcity as Development
Managers as well as Architects (Nilsson Design Limited) to the scheme.

Northacre plans to channel its capital reserves into co-investing in this new
partnership with FIIB. Having completed this first acquisition at Vicarage Gate
House, the company is continuing to actively pursue a programme of securing new
prime residential development opportunities in Central London on behalf of the
new partnership with FIIB. This will enable Northacre to considerably leverage
its capital through this new venture, together with fees for the provision of
services and a substantial performance related profit share fee.


Enquiries:
Northacre PLC                                          Tel: 020 7349 8000
John Hunter, Chief Executive
Simon Elgar, Finance Director

College Hill Associates                                Tel: 020 7457 2020
Kate Pope



Notes to Editors


First Islamic Investment Bank ("FIIB") are a Bahrain based investment bank
regulated by The Bahrain Monetary Authority.

Macquarie Capital Partners Limited acted as advisor to the parties in
structuring the fund, assisting in the acquisition of Vicarage Gate House and
arranging the senior debt financing.




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