Property Acquisitions

Northacre PLC
16 June 2000

                           NORTHACRE PLC
                                 
      Proposed Acquisition of 17 / 22 South Audley Street, W1
                      and 35 South Street, W1


The  Company  has  exchanged a conditional  contract  with  Breezy
Holdings  Limited for the acquisition of the entire  issued  share
capital  of Lawgra (no. 358) Limited ('Lawgra') at a consideration
of  £19,250,000. Completion of the conditional contract will  take
place  twelve  months  from  today. The  consideration  is  to  be
satisfied  by a cash payment of £18,000,000 payable on  completion
in  addition  to  a deposit of £1,250,000 already paid  to  Breezy
Holdings Limited.

Lawgra's  principal  asset is the leasehold property  situated  at
17/22  South Audley Street and 35 South Street, London W1  6BN,  a
period  property in the heart of London's Mayfair  district.   The
property  is  owned  by  Lawgra's subsidiary  Thomas  Goode  &  Co
Limited,  which  operates its china and plate  retailing  business
from this property.

For the Company, the proposed transaction comprises a mixed scheme
for  residential  development on the upper floors  as  well  as  a
commercial investment on the ground and lower ground floor.   From
the  development the Group companies will generate fees for  their
in-house  development, architectural and interior design services.
Profits  will  be  generated  from  the  residential  development,
together  with  rental  income from the commercial  investment  of
£600,000  per annum.  The rental income arises from a  lease  back
for  a  term of 15 years of the ground and lower ground floors  of
the  property  to the company carrying on the business  of  Thomas
Goode.

Furthermore  there exists the prospect of achieving a  substantial
gain from the process of securing planning consent within the year
between exchange and completion of the contract.

As  the proposed transaction is a reverse takeover pursuant to the
AIM  Rules  trading  in the Company's ordinary  shares  have  been
suspended  pending publication of a circular to  the  shareholders
and  convening  an  extraordinary general meeting  to  obtain  the
approval  of  the  shareholders.  In relation to  the  shareholder
approval Messrs John Hunter and Klas Nilsson (who between them own
53% of the ordinary shares) have given irrevocable undertakings to
support the proposed transaction.

                                                      16 June 2000

Enquiries:

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

College Hill                            Tel: [phone]
Kate Pope
Matthew Smallwood