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Berkeley raises £50m to go shopping
26.02.09
Berkeley Group boss Tony Pidgley today unveiled plans to raise £50 million from investors to fund a spending spree as rival housebuilders sell off land on the cheap.
The London property veteran, who has a reputation for spotting opportunities in the market, said the share placing would leave him with more than £300 million to invest in new land for housing development without taking on debt.
He said Berkeley's finances “remain very strong” at a time when rival housebuilders are battling to pay off debts and sell land.
However, Pidgley said that Berkeley would adopt “a more traditional dividend policy” and abandon its pledge to return £3 a share to shareholders by 2014.
It came as Berkeley admitted that sales are running 55% below historic levels as the lack of mortgage availability and spectre of unemployment puts off buyers.
•Covent Garden and Earls Court owner Liberty International today said it was looking to raise at least £350 million through asset sales and a possible rights issue to buttress itself against falling property values and recession-led tenant failures.
It came as the landlord reported full-year losses of £2.66 billion after the value of its estate plunged by £2.06 billion.
