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One of London’s best-known high-end residential developers is entering what its directors call a “dormant phase” while it looks for new projects that its Middle Eastern owners want to finance.
Northacre, which started building in the London prime residential market 30 years ago, said in its latest set of accounts that it was entering a new period.
“The directors’ intention is to keep the company dormant until the parent company is in a position to pursue future opportunities,” Northacre said in accounts for 2023, signed off this September.
“The group will go into a dormant phase and actively source new developments to grow its portfolio while exploring new strategies to increase fee income when in a position to finance opportunities,” the accounts say.
Northacre has three ongoing projects, according to the company’s website, two in London and one in Dubai.
In London, it recently completed the development of the Broadway, a mixed-use scheme near Victoria in west London that was once valued at more than £1B.
It also developed 1 Palace Street next to Buckingham Palace, which Bisnow revealed in 2023 had gone into administration just before it was completed. The scheme was still not complete a year later.
Its third scheme is the Palm Jumeirah, situated on one of the manmade Palm Islands off the coast of Dubai.
In 2013, a vehicle backed by Abu Dhabi Financial Group bought a majority stake in Northacre, which was then a listed company. ADFG subsequently merged with Dubai-based Shuaa Capital, making ADFG and Shuaa Northacre’s ultimate parent companies, according to the accounts.
Northacre made a £9.2M loss in 2023 from revenue of £3.9M. The loss was primarily driven by a £7.2M goodwill write-down and writing off the value of a £1.6M loan owed to the company from the special-purpose vehicle developing 1 Palace Street.
The company’s website lists no staff members under its team section. The accounts say the average number of staff in 2023 was 15. It paid £1.9M in wages and salaries in 2023. Meanwhile, ADFG has provided the company with a £2M loan, the accounts say.
Northacre has two directors, both of whom were appointed in January this year: Otto Dreyer, whose LinkedIn profile lists him as Northacre chief development officer and Shuaa head of real estate development, and Wafik Ben Mansour, CEO of Shuaa.
The company's Broadway development comprises 258 luxury apartments, 115K SF of offices and 20K SF of retail. According to a 21 October notice, negotiations are ongoing to extend the maturity of £100M of bonds listed on the International Stock Exchange that are owed by the special-purpose vehicle developing the scheme. The original maturity date was October 2023.
Northacre and Shuaa did not respond to requests for comment.
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