The Berkeley Group unveiled a £275 million pre-tax profit and a net cash position of £474 million, last week as it released interim results for the six months ending 31 October.
The Group said the UK’s property market downturn was “close to the point of inflection” following a 7.7% decline in first-half pre-tax profits.
Despite ongoing macroeconomic and geopolitical challenges, the company reaffirmed its full-year profit guidance of £525 million and a minimum £450 million target for FY26.
Berkeley also introduced a transformative 10-year strategy, Berkeley 2035, aimed at enhancing long-term shareholder value.
EMERGING OPPORTUNITIES
This initiative will leverage the company’s operational expertise and financial strength to seize emerging opportunities, including significant investments in Build to Rent (BTR) properties and land acquisitions.
The framework outlines a £7 billion capital deployment plan over the next decade, with allocations including £2.5 billion for land investment, £1.2 billion for the build-to-rent platform and £2 billion in shareholder returns. Flexible funding of £1.3 billion will adapt to evolving market conditions.
SUBDUED VOLUMES
Chief Executive Rob Perrins says that transaction volumes remain subdued, about one-third lower than FY23 levels, with meaningful recovery tied to improved consumer confidence.
However, recent government housing initiatives and planning system reforms signal potential growth opportunities.
Highlighting Berkeley’s achievements, Perrins praised the team’s work on transformative urban regeneration projects, including the award-winning Regent’s View development in Bethnal Green (main picture), exemplifying Berkeley’s commitment to delivering mixed-use communities.
