18th Sep 2013 08:31
LONDON (Alliance News) - Property developer Northacre PLC said Wednesday it had committed to invest GBP10 million in a company set up to redevelop a property adjacent to Buckingham Palace.
Northacre said that it was investing in special purpose company Palace Revive Limited, which has exchanged a contract to purchase 1 Palace Street. Completion is expected to occur during January 2014.
Planning permission has already been granted for 1 Palace Street, which is partially listed. Plans would see the property developed as a residential scheme with a restaurant on the ground floor and facilities including car parking, a gym and spa.
Palace Revive is financed by a number of institutional investors, and following completion, it is intended that Northacre will be appointed as development manager, the company said in a statement. Under such a deal, Northacre would receive development management fees as well as having an interest in profits on the completed development.
Northacre said it would be funding the investment from the company's current and future cash resources.
Shares in the Northacre were trading at 76.50 pence Wednesday morning, up 1.3%.
By Philip Nye; [email protected]
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