A new joint venture initially worth up to £400 million (approx. €615 million) is being launched today between the Berkeley Group and the Wellcome Trust.
The new partnership, to be called St Katharine, will invest in long-term regeneration sites with the potential to make strong commercial returns and have a powerful social impact. It will focus at first on schemes in London and the South of England.
Berkeley will source the land and apply its expertise to design, build and market each development. The Wellcome Trust will inject capital, providing access to £16 bln of funds and a potential long-term outlet for some residential products on each site.
'This joint venture will have access to new, long-term, patient capital,' commented Peter Pereira Gray, Managing Director of the Investment Division of the Wellcome Trust. 'We will be opportunity-led, bidding at the right time for sites that would not otherwise be viable and turning them into fantastic places. It is good news for the UK housing market.'
'This will bring together two complementary brands, leaders in their respective fields, with clear financial backing and strong balance sheets,' said Rob Perrins, Managing Director of the Berkeley Group. 'We both have an interest in generating strong returns by creating successful places. We have shared values and common goals, and that's what makes joint ventures work.'
Source: Berkeley Group