Berkley Homes has entered into a joint venture with the National Grid for a deal amount of 412.5 million pounds keeping intact 50 percent in the previous joint venture with St William Homes.
The company's CEO Rob Perrins said the vision is to take the redundant gasholders sites of the National Grid and stitch in the local communities and the move will helpÂ transform them into nature-rich, low-carbon and beautiful places homes equipped with some new amenities.
He added that St William currently is equipped with 24 sites and it is the best time for them to get into a partnership. They have the philosophy of making investments at the perfect timing to secure land holdings in the Southeast and London as well.
With the new joint venture announcement, the shares of Berkley immediately dipped by about 2 percent.
Lately, Berkeley assured that they are on track to meeting performance targets amid volatility as well as rising pressure and costs in the supply chain. The forward sales expected is more than 1.7 billion pounds and the forecast for net cash would be about 50 million pounds more than reported in October as a half-year update.
Berkeley is said to be gaining complete control of the nineteen sites with the help of the new deal. Moreover, two sites are on the planning card in the near future while three more are in the long run. This means the company will be equipped with over 20,000 future homes in 24 sites. About 28,000 jobs would be directly secured and simultaneously many more indirectly through the supply chain.
Meanwhile, Investec has come up with a statement for investors saying the deal is sensible and implemented at the perfect time. Berkeley understands the business well.
Berkeley Homes was founded in 1976 by Jim Farrer and Tony Pidgley and is headquartered in Cobham, UK. It is listed on the LSE and a constituent of the FTSE 100 Index. It had to shut down many sites in 2020 due to the COVID-19 pandemic and was forced to push backÂ dividend payments to the shareholders.
The company is named for building several apartment towers in London and an important one to note here is the One Blackfriars skyscraper. It has simultaneously worked on some smaller projects including Berkeley Community villages and Berkeley commercial. The Royal Arsenal Riverside and Wimbledon Hill Park are some more examples of the company's work.