Berkeley raises £50m to go shopping
Berkeley Group boss Tony Pidgley today unveiled plans to raise £50m from investors to fund a spending spree as rival housebuilders sell off land on the cheap.
New plans: Tony Pidgley will raise £50m from investors
The London property veteran, who has a reputation for spotting opportunities in the market, said the share placing would leave him with more than £300m 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 £350m 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 £2.66bn after the value of its estate plunged by £2.06bn.
Most watched Money videos
- Aston Martin unveils new Vantage sports car capable of 202mph
- How to invest to beat tax raids and make more of your money
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Mini unveil an electrified version of their popular Countryman
- Would you retire abroad for cheaper living costs?
- Pair of rare 1980s Ford Sierra RS500 Coswotths head to auction
- German car giant BMW has released the X2 and it has gone electric!
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- MG unveils new MG3 - Britain's cheapest full-hybrid car
- Four in 10 mortgages are being taken out by borrowers who...
- Trader Tom Hayes vows to fight on in bid to clear his...
- Morrisons boss says turnaround is in 'full swing' as...
- Endeavour Mining probe finds more 'secret' payments worth...
- Competition watchdog clears Aviva's £460m acquisition of...
- Car crash victims to get faster, higher compensation...
- Trump's social media firm soared on its stock market...
- H&M profits spring back to life as it seeks to fight off...
- Barclays debanked our tennis club - £120 compensation...
- MARKET REPORT: Carnival set for record year as bookings boom
- Debt fuelled deals are bringing great British firms...
- Insurance market Lloyd's of London toasts best result 'in...
- D-day for crypto wunderkind who crashed to earth: Sam...
- Commodities broker Marex Group snubs City as it files...
- Yorkshire BS launches savings account to go with 99%...
- Spirent ditches Vivai as Keysight gatecrashes deal with...
- Where in the UK do homes sell fastest... and slowest?
- Thames Water shareholders refuse £500m lifeline plea