Berkeley Group Holdings

The company was founded by Tony Pidgley[2] and Jim Farrer in Weybridge in 1976 as Berkeley Homes, a name borne by regional subsidiaries. Pidgley (the dominant partner) and Farrer had previously run the housing division of Crest Homes and it was their aim to focus on executive housing on single plots or small sites. Over the next few years, Berkeley expanded across the home counties and while building less than 100 houses a year, it floated its shares on the Unlisted Securities Market in 1984.[3]

After the flotation, Berkeley expanded geographically to the west, the south midlands and East Anglia; it also formed a joint venture, St George, to build in central London. By 1988, Berkeley was building over 600 executive homes a year. By then Pidgley was aware of the overheating in the housing market and sold houses aggressively to realise cash. For two years the company did no more than break even but its cash position was strong and in 1991 it was able to purchase the Manchester-based Crosby Homes and the outstanding 50% of St George;[4] Berkeley began buying large development sites at depressed prices. The 1990s was the decade in which Berkeley moved its operational orientation to major urban regeneration sites in London, Birmingham, Manchester and other northern cities.[5]

In the early 2000s, Berkeley refined its strategy to concentrate primarily on relatively large scale urban redevelopments in the London area. In 2003 it announced the deferred sale of Crosby Homes. The reduction in scale was intended to generate surplus cash and 2004 saw a scheme of arrangement to return £1.45m to shareholders.[5]

In 2015, the company won Large Developer of the Year at the RESI awards organised by Property Week.[6]

In March 2020, during the COVID-19 pandemic in the United Kingdom, Berkeley said that coronavirus had cost it £80m in just six weeks and began shutting down most of its sites,[7] having earlier cancelled a £455m shareholder payout.[8] In June 2020, the company announced it was consulting on up to 200 redundancies,[9] and revealed its pre-tax profits were down 35% partly due to the COVID-19 impact, with falls in sales and revenues.[10]

Founder and chairman Tony Pidgley died, after suffering a stroke, in June 2020. Non-executive director Glyn Barker was appointed interim chairman[11] for up to two years until a permanent replacement is identified.[12]

Berkeley Homes' business suffered as a result of the Coronavirus pandemic, with profits falling by a third. This resulted in the company pushing back payment of £455m to shareholders by two years.[13]

Berkeley Homes has built some apartment towers in central London, including the One Blackfriars skyscraper (2014).[14] In smaller operations it runs urban redevelopment programmes via Berkeley Community Villages and constructs in commercial property via Berkeley Commercial. Another subsidiary, Berkeley First, builds student and key worker accommodation. The operational subsidiaries include Berkeley Homes plc, which plans the largest estates and hires contractors with responsibility for management of communal areas unless and until taken over by residents' Right to Manage companies. The developer imposes covenants to retain value across homes in its neighbourhoods.[15]

Large examples of operations include community facilities with village-sized neighbourhoods which are green-buffered and constructed closes of apartments and houses; for example, a scheme in Bracknell for 750 new homes, a primary school, extra care facility, roads, landscaping and local shops to be constructed on mixed use land to expand the Warfield suburb, beside the town's computing and headquarters business parks.[16]

The Happy Man Tree with campaigners' decorations

In London developments include Wimbledon Hill Park and Royal Arsenal Riverside in Woolwich.[17]

Berkeley Homes was involved in a dispute with environmental campaigners over a 150 year old plane tree, known locally as the Happy Man Tree, which it wants removed as part of regeneration work on Woodberry Down estate in Hackney.

Berkeley Homes and Hackney Council sought an injunction against peaceful protesters from blocking the removal of the tree, which was granted.[18]

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