Berkeley Group has banked enough land to meet its targets three years early.
The housebuilder and regeneration specialist said it would only be buying land “very selectively,” after building up its future gross margin from land holdings over the past year by £1.37bn, taking the total to £8.3bn.
It had set a target of £7.5bn, which it intended to meet in 2025.
In its final results, published this morning, Berkeley said it was on track to make an annual profit of £600m-plus for the years ahead and would be returning more surplus capital to shareholders.
Berkeley delivered pretax profit of £551.5m for the year, up 6.4% on 2021.
Sale volumes increased to 3,760 homes from last year’ 2,825, but the average price per unit fell from £770,000 to £603,000, reflecting the different mix in properties sold.
Revenue rose by 6.6% from £2.2bn to £2.34bn.
The housing developer said strong performance had been further underpinned by its £412m buyout of the National Grid’s 50% interest in its St William joint venture. It now expects pretax profit to be £600m next year and £625m for the following two years.
Berkeley now has 26 of its 32 long-term complex regeneration developments in production.
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