"Berkeley is aware that it needs to balance its aims to be successful and sustainable with a social purpose"
The business is being run to reward those who continue to invest in the company with a clear profile of cash returns generated from earnings, and to ensure that a resilient underlying business remains once these returns have been paid.
Berkeley is aware that it needs to balance its aims to be successful and sustainable with a social purpose. Creating exceptional places that stand the test of time is at the forefront of this, as is its role in creating new jobs, working in partnership with local communities and contributing to the communities in and around each of its developments.
Berkeley is respectful of the inherently cyclical nature of the property market and is protective of the business' capacity to operate safely, sustainability and at an optimal size, now and in the future.
Berkeley's principal activities are to identify and buy development sites, secure suitable planning consents for those sites and then construct and deliver homes on those sites for its customers.
The Group is focused on its core markets of London and the South of England, markets in which its knowledge, experience and proven track record give it a competitive advantage in the planning and delivery of its schemes.
Berkeley's initial focus is on identifying and selectively acquiring the right land, and then eliminating planning risk early to secure viable, implementable planning consents appropriate to the location of each site. The business then works with leading architects, engineers and designers in the industry to design and deliver quality homes for its customers across the spectrum of size, location and affordability in great places which it creates for its customers and wider stakeholders.
Berkeley believes that it can operate most effectively by maintaining a secure financial base and ensuring a disciplined approach to risk management over the long-term.
A strong balance sheet and good visibility over performance in the near-term from cash due on forward sales which now exceed £1.4 billion afford Berkeley a flexibility in its business plan which enables it to react to changes in the market and act quickly and decisively when opportunities arise to add value, whether through opportunistic land purchases, being ready and able to implement swiftly any decisions to proceed with the construction of new phases of its schemes or adapting planning consents to meet market demand.
Berkeley will continue to forward sell new homes wherever possible, using this visibility to keep financial risk low and so mitigate the operational risks of delivery, matching supply to demand wherever it can.