UK: Residential developer Berkeley Group has announced a leadership shake-up and a new £7 billion investment strategy for its next phase of growth.
Chief executive Rob Perrins, who has led the company since 2009, will become executive chairman following its annual general meeting on 5 September. He will replace Michael Dobson, who is stepping down.
Richard Stearn, the group’s chief financial officer for the past decade, will take over as chief executive. Stearn first joined Berkeley in 2002 before leaving to work for developer Quintain Estates and Development, later returning to the business.
The leadership changes follow the launch of Berkeley 2035, a long-term strategy to reposition the business and respond to ongoing sector challenges, announced last December.
The plan includes £2.5 billion for land investment, £1.2 billion in build-to-rent (BTR) projects, and £2 billion earmarked for shareholder returns.
Berkeley said the initiative aligns with the UK government’s goal of delivering 1.5 million homes over the current parliamentary term.
In a statement to shareholders, the group said it was “very conscious of the complexity of today’s operating environment in our industry, the role of housing in the government’s growth agenda and the importance of the current executive team to maintaining Berkeley’s unique business model and culture”.
The announcement follows a mixed set of financial results. For the year ending April 2025, Berkeley reported a 5.1 per cent drop in pre-tax profits to £528.9 million, slightly above guidance.
Turnover rose by 0.9 per cent to £2.49 billion, driven by growth in commercial revenue and land sales, despite a decline in residential revenue.
The group delivered 4,047 new homes in London and the South East over the year, up from 3,521 the year before. However, the average selling price fell from £664,000 to £593,000.
Looking ahead, the firm expects pre-tax profits to decline further to around £450 million in the current financial year.
Following the announcement, shares in Berkeley fell 8.2 per cent to £37.78 on Friday morning, making it the biggest faller on the FTSE 100.
Adam Vettese, market analyst at investment platform eToro, said: “Regulatory costs as well as stickier interest rates, which are softening demand, could pose further challenges.”
