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Berkeley still growing

Berkeley Group is expected to deliver another strong performance.
November 24, 2014

Berkeley Group (BKG) releases interim figures on Friday, and the London focused house builder is expected to deliver another robust performance.

IC TIP: Buy at 2458p

Investors will want to see how the group is progressing in crystalising the value locked up in the land bank, currently standing at over 11,000 units. Recent successes include securing planning consent for a site at London Dock in Wapping and one in Chiswick. The company has also raised nearly £100m through the disposal of its rental portfolio, further boosting cash flow. In fact, it now expects to remain ungeared even after paying the 90p per share dividend in September.

Berkeley has also joined forces with National Grid to develop National Grid's portfolio of undeveloped brownfield sites. Called St Williams Homes, the joint venture is expected to construct 14,000 homes in London and the South East.