Northacre soars on Lancasters hopes

11th Aug 2010 13:21

Shares in property developer Northacre rocketed as it confirmed the terms of its profit sharing agreement with property group Minerva on The Lancasters apartment development in central London.Northacre will earn 5% on profits of up to 10% of project costs, rising in stages to 50% of the surplus if profits amount to more than 20% of the project costs.In June, Minerva, where the board is facing a shareholder revolt, said pre-sales at The Lancasters totalled approximately £230m, representing just over half of the total area of the scheme. Minerva also reiterated it expected the project to generate "significant returns".