Housebuilder Berkeley Group is on track to deliver shareholders returns of £13 per share by 2021, as trading during the three months to June 30 has continued in line with the group’s expectations.
Berkeley has forged ahead with development projects during the period, completing 149 of the 185 properties in Grosvenor Waterside slated for completion in 2015. The company acquired three new sites in Wapping, Hammersmith and Chiswick during the first half of 2012, and is on schedule to meet its goal of growing its gross margin in land holdings to £3bn by April 2014.
Chairman Tony Pidgley said: “Market conditions continue to remain resilient, with London benefitting from its world-class status, which has been enhanced by the Queen’s Diamond Jubilee and the Olympics. Limited supply of quality new housing, particularly in the best locations in London and the South East, continues to provide strong support for house prices despite the underlying economic conditions and lack of feel-good factor.
“Housing has to become a national priority, not just for government but for the whole country. This does require the presumption in favour of sustainable development within the NPPF to be enforced. Housing can also be part of the economic recovery as every home built by Berkeley creates some 3.5 jobs alongside the associated benefits of affordable housing, infrastructure improvements, creating fantastic new homes and vibrant places.”
Berkeley Group, which focuses on residential and mixed-use housing developments in the UK, made a profit of £214.8m for the financial year ending 30 April.
sophia.furber@estatesgazette.com
