Northacre : 2016 - 15th September - Results for the six months ended 30th June 2016

15thSeptember 2016

Northacre PLC is pleased to announce its interim financial results for the six months ended 30thJune 2016. The Interim Report and Accounts will be available shortly on the Company's websitewww.northacre.com.

Extracts from the Company's Interim Report and Accounts are shown below.

Enquiries:

Northacre PLC

Niccolò Barattieri di San Pietro (Chief Executive Officer) 020 7349 8000

finnCap Limited (Nominated Adviser and Broker) Stuart Andrews

Emily Watts 020 7220 0500

The referendum vote to leave the EU is expected to result in added caution in the prime residential market, in addition to the current headwinds that are facing this sector.

Chief amongst these is stamp duty, and it is difficult to see how the new government can continue to ignore the decline in taxation income as a result of falling sales. There has been no positive impact at the lower end of the market, and we believe the current stamp duty levy will have to be reviewed before long.

Clearly there remains political and economic uncertainty in particular with regard to our future relationship with the EU. It is too early to make any predictions about the precise impact of the vote to leave EU, and the outlook for the prime residential sector is therefore that it will remain flat at least for the next few months. In the meantime, committed investors will use the opportunity to acquire financial assets cheaply against the backdrop of the fall in the value of sterling, though this is less likely to be so beneficial to the prime residential sector.

Northacre, however, has good reason to be optimistic as it constructs two significant projects, 1 Palace Street and The Broadway, in a rather more benign construction climate, with the potential for delivery to the market at a time of more economic certainty.

Klas Nilsson

Non-Executive Chairman

In the last few months we have had the Brexit vote which has brought some further uncertainty to the high-end housing market. In this uncertain market Northacre is fully committed to delivering the most desirable and beautifully crafted homes. We strongly believe that the flight to quality will become even more apparent in the short to medium term and that quality will be rewarded with premium exit values. Having talked about a more cautionary outlook it is also important to note that the strength of the Dollar towards the Pound makes London a much more attractive market for Dollar denominated (or pegged) buyers. We have already started seeing this in our viewings.

Current Developments

The Broadway

Since we achieved planning consent in late February 2016 we have been working on submitting an S73 Planning Application which would see the number of units increase and hence the average size decrease. This is in response to end users looking for smaller apartments.

During this period we have also selected the demolition contractor who is due to start on-site in November 2016, the week after we gain vacant possession of the building.

1 Palace Street

Balfour Beatty has been selected as the general contractor and took possession of the site in June 2016. Careys has been awarded the contract for the basement and frame. They are on-site and in the process of breaking the existing concrete pile caps.

As of August 2016 we have exchanged on thirty nine units out of seventy two. This is eleven more since our last update in April 2016.

Vicarage Gate House

This development achieved practical completion in April 2016. In May 2016 we resumed the sales push and to date we have sold four out of the thirteen units. We had two further units which had exchanged but unfortunately did not complete. We have received two further offers which we turned down as they were too low.

13&14 Vicarage Gate

We achieved practical completion on the last unit in May 2016. At present we have sold the first floor unit and the second floor is under offer and should exchange in early October 2016. Moreover, we have had other offers at prices substantially below asking price which have been rejected.

Chester Square

The development is moving along swiftly, the contractor is on-site and is undertaking the structural works and refitting the roof. All the interior design has been agreed and signed off by the client. Practical completion is expected in July 2017.

22 Prince Edward Mansions

The high-end market in the area has seen very little activity since we put the property on the market in February 2016. We have taken the property off the market for the summer months and will be relisting it in mid-September at the reduced price of £6.55 million. We are hoping that this will create a stronger interest for the property.

Outlook

In my last update I discussed how construction inflation had reached unsustainable levels and the effect this would have on supply and pricing. It is interesting to note that construction inflation has already slowed down considerably and we now believe that it will be minimal for the foreseeable future.

Niccolò Barattieri di San Pietro Chief Executive Officer