London and South East-focused housebuilder Berkeley PLC (LON:BKG) is to hand shareholders an additional £455mln of cash over the next two years.
The enhanced payout will take the amount of cash to be distributed over the next 24 months to £1bn and follows a review of the builder’s financial position.
Berkeley had already promised to pay out £280mln each year up until 2025, but in 2020 and 2021 there will now just be a payment of £500mln in March.
In 2022 and going forward there will be a reversion back to a £280mln payment.
The housebuilder said that since 2011 it had acquired 25 long-term regeneration sites that are now in, or coming into, production.
Due to this, the number of houses completed will rise by 50% over the next six years, though prices in most of these regeneration sites will be lower than most properties sold in recent years.
Over the six years to 30 April 2025, Berkeley added it is targeting the delivery of £3.3bn of pre-tax profit, with the profit in any one year ranging between £500 million and £700 million, depending upon the timing of delivery.