Development Mangment Agreement with 552 Kings Road

NORTHACRE PLC
27 October 1999


                      NORTHACRE PLC
  Development Management Agreement with 552 Kings Road
                         Limited
                            
Northacre plc ('Northacre'), a developer in its own right
of  landmark  residential  property  schemes  in  Central
London,   today  announces  that  it  has   concluded   a
development  management appointment with 552  Kings  Road
Limited, a subsidiary of European Land.  Under the  terms
of  the  appointment, Northacre will provide a number  of
services  to  European Land, the developer of  the  prime
residential  site at 552 Kings Road.   The  site  at  552
Kings  Road  is  the  first of four sites  in  the  Royal
Borough  of Kensington and Chelsea ('RBK&C') acquired  by
European  Land for residential redevelopment from  King's
College   London,   as  part  of  the   Private   Finance
Initiative.

The  development at 552 Kings Road will  be  the  largest
development   in   RBK&C  since   the   Chelsea   Harbour
development ten years ago.  The development will comprise
287  apartments and 14 houses located on  the  7.5  acres
site  in  a  parkland setting.  The development  includes
underground car parking and its own leisure complex  with
swimming pool.

All   three  divisions  of  Northacre  plc  will  provide
services to European Land on the project:
-    Northacre, providing development management services
-    Nilsson Design, providing design audit services
-    Lifestyles,   providing   interior   design   and
     contracting services

Under the terms of the contract for the provision of  the
above  services, Northacre is to be paid  a  fee  over  a
period  of forty months, amounting to £2.6m, plus on  the
achievement  of  a pre-established level  of  development
profit,  the  sum of £1.0m.  In addition, the arrangement
includes  the  potential  for a  substantial  performance
related  profit share, based on achieving  enhanced  sale
values.

The Chief Executive of European Land, Godfrey Bradman, is
well  known  for the high quality Broadgate  and  Ludgate
developments  in  the  City of London  and  is  currently
involved in major London schemes such as Paddington Basin
and White City.

Godfrey  Bradman,  Chief  Executive  of  European   Land,
commented:

'We  welcome  the services of Northacre  on  this  unique
project,  and believe that their considerable  experience
in  high quality residential schemes will be valuable  in
developing this prime site.'

John Hunter, Chief Executive of Northacre, commented:

'We  are  delighted to be working with European  Land  on
this  prestigious project, which follows  our  successful
developments  at The Bromptons, Observatory  Gardens  and
Earl's  Terrace.   We will demonstrate  our  capabilities
through   success,  ever  conscious   of   the   possible
opportunity  to  work  on the other  three  sites  to  be
developed   by  European  Land  as  part  of   the   PFI.
Independently,  Northacre will  continue  to  seek  other
sites  where we can utilise our knowledge and  skills  to
improve  and  enhance  the  value  of  prime  residential
sites.'


Enquiries:

Northacre plc                             Tel: [phone]
John Hunter, Chief Executive

European Land                             Tel: [phone]
Godfrey Bradman, Chief Executive

College Hill                              Tel: [phone]
Kate Pope