Berkeley Group Regulatory News (BKG)

The Berkeley Group Holdings plc

Interim Management Statement

Period from 1 May 2014 to 31 August 2014

1 September 2014

At the Annual General Meeting of The Berkeley Group Holdings plc ("Berkeley" or "the Group") being

held today, the Chairman, Tony Pidgley CBE, will make the following Interim Management Statement

which covers the period from 1 May 2014 to 31 August 2014:

"The last five years have seen a period of sustained investment in land and construction for Berkeley. This has enabled the Group to deliver some 15,750 new homes in London and the South East of England over the period and support over 21,000 jobs directly and in the supply chain in the last year alone. A strong market in the last financial year, in which cash due on forward sales rose to over £2.2 billion, left Berkeley well positioned at the start of this year to maintain its investment and contribution to the UK's economic recovery.

Since the start of the current financial year, the market has reverted to normal transaction levels from the high point in 2013, providing a stable operating environment. Demand for the right product with good design in the best locations has remained resilient and, reflecting this, forward sales have been maintained at the levels previously reported.

In respect of our land holdings, the Board has targeted further growth in the value of potential gross margin over the course of the current year, driven particularly by unlocking planning and gaining access to the land currently held in the pipeline, which comprised over 11,000 plots and had an attributable potential gross margin of some £1.5 billion at the last year end. Good progress has been made in the period to unlock a number of these sites, and we will provide an update on this at the half year. New planning consents at London Dock in Wapping and a site in Chiswick in the period have further enhanced the quality of the land bank held unconditionally and the acquisition of two new sites in the period on a conditional basis into the pipeline provides further visibility on the availability of land in the future.

The disposal of a portfolio of the Group's ground rent assets for £99.8 million, which completed on 17th June 2014, has contributed to a strong operating cash inflow over the period. The Group currently expects to remain ungeared following the dividend payment of 90 pence per share (£121.7 million) on 26 September 2014.

A further 180 pence per share is payable as dividends in order to meet the first milestone of paying 434 pence per share by September 2015. The Board has previously indicated that it will aim to make regular dividend distributions where conditions permit and is on track to meet this commitment. Looking to the next milestone of 433 pence per share in September 2018, the Board intends to meet a proportion of this through regular dividend payments, where market conditions permit.

With a strong balance sheet and land bank Berkeley is well positioned to continue to invest in the business and deliver returns to shareholders. Earnings this year are anticipated to be in line with current market expectations."

END

For further information please contact:

The Berkeley Group Holdings plc Novella Communications

R C Perrins Tim Robertson

N G Simpkin T: 020 3151 7008

T: 01932 868 555