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Bottom Called
Comments
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He is probably concerned that last summer's purchases have not been as cheap as he first thought;
http://www.independent.co.uk/news/business/analysis-and-features/housebuilders-partied-like-it-was-89--and-now-the-pain-is-like-91-860764.html
"Sunday, 6 July 2008 - Berkeley announced two weeks ago that the company would spend £350m on cheap land.
Berkeley board members had noted a 25 per cent fall in land prices, so decided to go buying in a move that in effect calls the bottom of the market."
And he seemed to call the current crash a couple of years early;
http://www.guardian.co.uk/business/2004/jun/26/berkeleygroupholdingsbusiness.housing
"In the wake of a strategic review, the company is to wind down its traditional housebuilding business and focus on redeveloping brownfield land. It will sell off about half its 26,000-odd plots.
The announcement, however, prompted fears that Tony Pidgley - who runs Berkeley - may be repeating his shrewd move of the early 1990s, when he sold off most of his properties just before house prices slumped."
I suppose if you are constantly doing deals you can call it whatever you like...restructuring or bottom = no-one will remember in a couple of months.0 -
Seems like everybody else, he has no idea which way the market is going to go..........LONDON, Feb 26 (Reuters) - Housebuilder Berkeley Group Holdings Plc (BKG_u.L) raised 50 million pounds ($71.2 million) from shareholders to bolster its war chest for land acquisitions, it said on Thursday, boosting its shares.
The successful placing of 6 million shares was at slim 2 percent discount to last night's closing price and represents 5 percent of Berkeley's share capital. It was supported by the group's largest shareholder, Saudi Arabia-based SAAD, and was fully underwritten by UBS.
Berkeley shares were up 6.4 percent at 901p by 1254 GMT, dragging up other UK housebuilders. The stock rose as much as 8 percent to hit a two-month high of 917 pence.
Berkeley said the placing will give it a 300 million pound war chest to invest in new land. "The current market weakness presents exceptional value creation opportunities for strong businesses," said the group in a statement.
But Berkeley denied predicting an upswing in the housing market. "We are not trying to call the bottom of the market, we're just quietly looking at opportunities," CEO Tony Pidgley told Reuters.
He said the group will look at land in markets where it currently operates, sticking to London regeneration sites, as well as moving back into small executive sites ranging from 5 to 50 houses.
"We will buy those small traditional sites around the M25," he said, referring to the motorway around London.0 -
"We will build more houses," he said, referring to those dwellings that people live in."We will buy those small traditional sites around the M25," he said, referring to the motorway around London.0 -
Link, my @rse.0
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If I remember correctly this company actually called the downturn at the correct time and was able to reduce their landbank ahead of the fall, not like companies like Barrett etc. Then again if he is not singing off your hymn sheet he must be a property pimp :rolleyes:
I picked the winner for the 5:30 at Kempton today, let me know if you want any hot tips...0
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