I'd like to bring your attention to this article from the Times Online Feb 20th.

http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article1409272.ece

'From The TimesFebruary 20, 2007

Super-flats for 26m will offer rooms with a view

The new owners of the former Thistle hotel at Lancaster Gate in West London have submitted plans to transform the site into 80 super-apartments overlooking Hyde Park with prices of up to 26 million, The Times has learnt.

City bankers are understood to have made informal approaches to buy several of the smaller flats off-plan for between 3 million and 4 million. That would be record pricing per square foot for Bayswater housing in an area close to Tony Blairs multimillion-pound buy-to-let house.

Minerva, the London-based property developer, bought the site last summer for 67.2 million with planning permission in place to convert the interior of the historic Victorian hotel into 124 apartments and add underground parking.

New plans submitted to Westminster Council include a request to reduce the number of apartments to 80, with the largest on the top floors covering about 8,000sq ft (745sq m), property sources said. The plans include a pool under the private front garden, which spans 120m of Bayswater Road, and grandiose reception rooms with 15ft ceilings.

Minerva teamed up with Northacre, the specialist upmarket flatbuilder, to buy the Lancaster Gate site. Sources said that Minerva had expected a price of 1,200 to 1,300 a square foot when it completed the purchase of the site last July after six months of negotiations. The prices for so-called prime homes in the area have shot up about one third since July, according to independent valuations from the agency Knight Frank, to about 1,500 a square foot.

Minerva and Northacre, which has a 5 per cent equity stake in the venture, expect to hold on to a substantial number of the top-priced flats until the site is finished late in 2009. By then property prices there should have doubled.

One Hyde Park, a Candy & Candy-designed scheme for 86 super-flats on the south side of Hyde Park, has achieved the highest price yet for residential property. Contracts have been exchanged off-plan on a batch priced at 4,200 a square foot, valuing the top four penthouses at 84 million each, The Times reported this month.

Stephan Miles-Brown, the head of residential development at Knight Frank, said of the Lancaster Gate scheme: If the market continues at this rate, then 25 per cent annual compound growth is a distinct possibility and 3,000 per square foot easily achievable. Northacre was doing Candy & Candy design before the Candy brothers entered the scene.

A Minerva spokesman said: We are excited about the scheme . . . but details have yet to be finalised. We are excited about a project which we believe will be a success for the development partners and the community.

Doubling up

Minervas development of the old Thistle Hotel on Lancaster Gate dubbed the Lancasters could land the company and its partner Northacre hundreds of millions of pounds in profits.


- The total cost of the site including debt finance is about 200 million

- New plans envisage up to 200,000 sq ft of residential property which if sold at an average of 2,000 per square foot could mean a site with a built value of about 400 million

- Minerva and partner Northgate are expected to start to presell about half of the flats from this autumn to start to cover their costs

- There is the tricky issue of obtaining revised planning permission. Minerva and Northacre are understood to have lodged a request with Westminster council to pay extra to have the option of building some of the affordable housing segment elsewhere

- Minerva will need to buy a site to build those houses. Westminster could demand a levy to build more affordable homes than the ten extra units set aside for a 125 unit scheme. Minerva would gain from having more high value homes on the old Lancaster Gate site'

RNS - Feb 26th

'Northacre Statement re Possible Offer


RNS Number:8704R
Northacre PLC
26 February 2007


Northacre plc
(the "Company" or "Group")


Statement re: Possible Offer

The Company notes the recent movement in its share price. In addition, the
Company notes the recent press articles regarding one of its major
developments. The Company also confirms that it has received a preliminary
approach, which may or may not lead to an offer being made for all or part of
the Group.

A further announcement will be made in due course as appropriate.'

I hope you can make time to read the information above and post any research you have uncovered. There are never any guarantees so please DYOR before investing in any share.

Bought a small holding yesterday of 10k shares at 50p. Reached a new high yesterday closing 47/50 - Mkt Cap 11m.

Worth also a look at the trades going through yesterday. Can only buy in small amounts however sells are much larger and at a premium to the bid price.

From FT.com 28th Feb.

Big rise in price of top London homes
By Jim Pickard

Published: February 28 2007 02:00 | Last updated: February 28 2007 02:00

Prices for homes in the best streets of central London have risen at their fastest rate for almost 30 years, according to new figures from Knight Frank, the agents.

Annualised price growth was 30.5 per cent in the year to January, according to the group's Central London House Price Index. This is the biggest acceleration in the market since 1979. In January alone there was a 3 per cent rise, the fastest monthly growth rate on record.

The trouble with growth rates like that is the faster they go up the more likely they are to correct, however with London becoming a tax haven for foreign oligarchs etc it could hold its value over the 2 years or so needed to complete the project.

Do you know of cost estimates for this project?

For this project, just what was in the article...

'- The total cost of the site including debt finance is about 200 million

- New plans envisage up to 200,000 sq ft of residential property which if sold at an average of 2,000 per square foot could mean a site with a built value of about 400 million '

and that 'could land the company and its partner Northacre hundreds of millions of pounds in profits.'


worth a visit to www.northacre.co.uk to read about their history(track record) and other projects.

I noticed this stock was rising, and then read on a MoneyAM competitor website about the above article. Since there was no info on here created a thread to share with others. Only bought in yesterday 10,000 shares at 50p.

closed 48/51 and they were offering 1p premium on the bid. Nice end to the week, this is my only holding now having moved into cash over this week. I am looking to add to this holding and do have a few others which I am researching.

Have been doing some more research and from their RNS in July last year 'that in a second joint venture with Minerva PLC, they have completed the
acquisition of the freehold vacant, former Thistle Hotel, at 75 - 89 Lancaster
Gate, London, W2. The property includes the benefit of a planning consent for
the conversion of the listed building into 124 prime residential apartments with
underground parking.

...In return, Northacre's involvement will include fee income from Development Management and Architectural Services, as well as an entitlement to profit share, ranging from 5% to 50%, dependant upon the performance of the development returns.'

So for this project alone they will receive fee income (from Development Management and Architectural Services) and profit share ranging from 10m - 100m (based on share of 200m profit)

Some info on other projects which underpins that their current Market Cap from here is still undervalued nonetheless (excluding the massive Lancaster Gate project)

In November' Following the acquisition of two major new revival schemes at The Odeon Cinema,
Kensington High Street and Lancaster Gate, opposite Hyde Park, the Group has
seen an increase in fee income. New appointments are also in hand for both the
Architectural and Interior Design companies.


There remains one unsold apartment at the Phillimores. Upon the sale of this
apartment the outstanding balance of our entitlement will be secured, which we
anticipate by the end of our financial year to February 2007.

...Following the successful launch of the Ambassadorial Show Apartment at 44-46
Park Street in October 2006 we expect that the majority of sales will be
complete by the end of our financial year to February 2007. Depending on the
timing of these sales, some profitshare entitlement can be expected during this
financial year subject to completion of the scheme.'

So surely when results are released in the future they will be showing a healthy profit.

Just to add to the info in post 10 above relating to the Phillimores apartment and the Ambassadorial Show Apartment at 44-46 Park Street, please find an extract from an article in the Sunday Times Dec 17 2006(http://property.timesonline.co.uk/tol/life_and_style/property/new_homes/article753943.ece)

'Australias richest man, James Packer, son of Kerry Packer, the late media mogul, has reportedly just paid 15m for a newly converted flat set across three floors at 44-46 Park Street in Mayfair. The building, originally residential, was turned into office accommodation in the 1940s, when Sir Winston Churchill held cabinet meetings in its rooms.

The latest makeover has converted it back into six luxury flats, designed to appeal to ambassadors and the super-rich. Northacre, the developer behind 44-46 Park Streets reconversion, has also turned the buildings of Queen Elizabeth College, set in four acres in Kensington, into 66 flats, now known as the Phillimores.

In Mayfair alone, according to estate agency DTZ Residential, reconversion has increased the supply of local homes by 15% over the past five years. The explanation is simple: according to estate agency Knight Frank, the price of residential property in prime London locations has risen by more than 26% during the past 12 months. In Kensington and Chelsea, Rightmove, a property website, reports asking prices have risen by 55.8%.'

So surely when results are released in the future they will be showing a healthy profit and with no increase in the current SP, with Mkt Cap of 11m they will be on a PE of less than 3 IMHO and due a serious re-rating! All this does not even take into consideration the Lancaster Gate Project, which this thread was started for highlighting the super-flats and super-profits in the near future!

B4, I think you have done well to unearth this one. I have looked at NTA on and off and thought the fundamentals were good when it was around 30p a share, but was worried that it was overlooked by the market. Clearly somebody else has done their homework, hence the possible takeover offer.

Agree that the projected increase in turnover and these new projects could really take the company places - at only 11 mil mkt cap there is a lot of room for growth!

Large sells yesterday and more selling today, price is holding up very well IMHO.

Regarding buyout/takeover talks see below From The Times February 27, 2007

Northacre lifted by takeover talks Small caps
Northacre jumped after disclosing that it was in takeover talks a statement that the London housing developer is thought not to have wanted to make.

Shares in Northacre, which have risen from 17p in December, reached 47p yesterday, soaring 12p after the Takeover Panel made contact to ask whether a statement was required. That came at a time when the company, which is 48 per cent owned by two of its directors, was scouting around options to raise capital talks that led to two separate financial institutions to moot that the group could be taken private.

Northacre was understood to have considered that recent share gains were more to do with optimism about its prospects, particularly as buyout talks were at an extremely early stage. However, it decided that full disclosure would be the safest policy.

Noticed some RNS are not showing on MoneyAM...below another company which is expressing an interest...buying up from the sellers it appears recently

Rule 8.3- Northacre PLC


RNS Number:8650S
BCM Investments Ltd
13 March 2007



FORM 8.3

DEALINGS BY PERSONS WITH INTERESTS IN SECURITIES REPRESENTING 1% OR MORE

(Rule 8.3 of the Takeover Code)



1. KEY INFORMATION


Name of person dealing (Note 1) BCM INVESTMENTS LIMITED

Company dealt in NORTHACRE PLC

Class of relevant security to which ORDINARY SHARES
the dealings being disclosed relate
(Note 2)

Date of dealing 12/3/2007



2. INTERESTS, SHORT POSITIONS AND RIGHTS TO SUBSCRIBE



(a) Interests and short positions (following dealing) in the class of relevant
security dealt in (Note 3)


Long Short
Number (%) Number (%)

(1) Relevant securities 275,000 ords 1.21% -

(2) Derivatives (other than options) - -

(3) Options and agreements to - -
purchase/sell

Total 275,000 1.21%



(b) Interests and short positions in relevant securities of the company, other
than the class dealt in (Note 3)


Class of relevant security: Long Short
Number (%) Number (%)

(1) Relevant securities None None

(2) Derivatives (other than options) None None

(3) Options and agreements to None None
purchase/sell

Total - -



(c) Rights to subscribe (Note 3)


Class of relevant security: Details

None



3. DEALINGS (Note 4)


(a) Purchases and sales


Purchase/sale Number of securities Price per unit (Note 5)

8/3/2007 100,000 48p
9/3/2007 20,000 49p
12/3/2007 90,000 48p
12/3/2007 65,000 48.25p


(b) Derivatives transactions (other than options)


Product Long/short Number of Price per
name, e.g. (Note 6) securities unit (Note 5)
CFD (Note 7)

None - - -



(c) Options transactions in respect of existing securities

(i) Writing, selling, purchasing or varying


Product Writing, Number of Exercise Type, Expiry Option
name,e.g. selling, securities price e.g. date money
call purchasing, to which American, paid/
option varying the option European received
etc. relates etc. per unit
(Note 7) (Note 5)

None - - - - - -


(ii) Exercising


Product name, Number of Exercise price per unit
e.g. call option securities (Note 5)

None - -



(d) Other dealings (including new securities) (Note 4)


Nature of transaction Details Price per unit
(Note 8) (if applicable)
(Note 5)

None - -



4. OTHER INFORMATION

Agreements, arrangements or understandings relating to options or derivatives

Full details of any agreement, arrangement or understanding between the person
disclosing and any other person relating to the voting rights of any relevant
securities under any option referred to on this form or relating to the voting
rights or future acquisition or disposal of any relevant securities to which any
derivative referred to on this form is referenced. If none, this should be
stated.


None
..............................................................................




Is a Supplemental Form 8 attached? (Note 9) NO



Date of disclosure 13/3/2007

Contact name PHILIP COOPER

Telephone number 0207 495 7111

If a connected EFM, name of offeree None
/offeror with which connected

If a connected EFM, state nature of None
connection (Note 10)


Notes

The Notes on Form 8.3 can be viewed on the Takeover Panel's website at
www.thetakeoverpanel.org.uk





This information is provided by RNS
The company news service from the London Stock Exchange

END

Holding up well, probably because if they do drop the offer price many buyers lurking to get in at a lower price IMHO.

Could be worth watching once the SP settles after today's news that no takeover is going to be taking place.

NTA Bid: 67p Offer: 70p Change: -13.5

Northacre PLC - Statement re Possible Offer

RNS Number:7981W
Northacre PLC
17 May 2007


Northacre plc
(the 'Company' or 'Group')


Statement re: Possible Offer

The Company notes the recent press articles regarding the preliminary approach
as announced on 26 February 2007. The Company confirms that, following further
recent movements in its share price, it is no longer in discussions in respect
of an offer for all or part of the Group.

That RNS was only released an hour ago, so there could be more falls on the way.

155K traded so far.

(And boy, am I glad I didn't buy at 80-something when I was tempted to!)

Planning permission secured! Well done Northacre and Minerva.

And a fair recovery in the SP: NTA Bid: 74p Offer: 77p Change: 8

Why did this news come out today when its chairman sold NTA a month ago at 77.5p and now it is only 59p?


Northacre says chairman sells 450,000 shares to cut stake in co to 20.03 pct - AFX


LONDON (Thomson Financial) - UK smallcap company Northacre PLC said chairman Klas B Nilsson sold 450,000 shares at 77.5 pence a share on June 18, cutting his stake to 20.03 pct, or 4.55 mln shares.

The company also clarified that prior to the sale chairman Nilsson and chief executive John Hunter each held 22.01 pct stake, or 5 mln shares, and not 5.5 mln -- as stated earlier.