好色先生TV

Berkeley Group has always been a bit different to other housebuilders. Just that bit, well, bigger. If not the turnover, then the developments. The profits. The salaries. The ambition. And with founder Tony Pidgley at the helm and the likes of former director Tony Carey, the same was true of the personalities. Bigger.
In City folklore, Pidgley is feted as the man that called two recessions right, beat the market, and through his energy and vision created what is undeniably the most successful housebuilder in the land. When he announced to the City his June 2009 move upstairs to become chairman, the assembled analysts gave him a sustained round of applause, such was their respect for him.

What of now? This summer marks three years since former finance director Rob Perrins replaced Pidgley as managing director, and some say the era of big personalities has come to an end. Before his appointment, Perrins was seen as a trained accountant and steady backroom boy with little public recognition. But since taking over the reins, his reputation has grown, alongside group profits - up 24% to 拢136m in 2012. During his tenure, the housebuilder has seen turnover rise 40% to 拢1.04bn, and growth in houses built outperforming nearly all its peers.

Now entrenched in the role, and with a pledge to return 拢1.7bn to shareholders by 2021, Perrins is entering a new phase where he - and the group - have to deliver on this promise. And if he succeeds he stands to earn himself an austerity-busting 拢74m windfall. So how has he gone about filling the founder鈥檚 shoes, and, with Pidgley still active as chairman, how in control is he really?

Power play

After meeting him, it is hard to say that Perrins鈥� takeover signals the triumph of the dreary number crunchers. Though it is true that he does not have the same down-to-earth manner as his predecessor (whereas Pidgley was brought up in a Barnardo鈥檚 home, Perrins was educated at Marlborough College), it would be wrong to say he lacks personality.

Confident, genial, very much his own man, and at 47 more photogenic than the average listed housebuilder boss, Perrins doesn鈥檛 struggle for charisma. And he doesn鈥檛 just have experience with numbers. He ran the group鈥檚 Berkeley Homes division in 2001, taking over that role from Pidgley鈥檚 son, before becoming group finance director later the same year. From around 2006 it became clear he was the heir apparent for the whole business - though he admits he had to 鈥渇ight quite hard鈥� to secure the job from there.

I鈥檝e worked in partnership with Tony [Pidgley] for 25 years. He鈥檚 very good in some areas, I鈥檓 very good in others

In a business that has a reputation for being highly competitive internally, charm isn鈥檛 enough on its own. He has had to demonstrate his fair share of steel. The shock departure in September 2010 of Pidgley鈥檚 long-time collaborator Carey, the man who built up the successful but controversial St George part of the business, is probably the most obvious example. Neither Pidgley, Carey or Perrins have ever commented in detail on the dispute, which ended this year in a 拢5m out-of-court settlement following Carey鈥檚 claim of unfair dismissal. But rightly or wrongly, it was viewed in many quarters as a struggle for control between Perrins and one of Pidgley鈥檚 most trusted lieutenants.

And, if Perrins regrets the disagreement, he is unapologetically clear that the company has changed for the better since Carey鈥檚 departure. 鈥淯nfortunately, it was very sad, we fell out with - well, we didn鈥檛 fall out, we had a disagreement over strategy with - Tony Carey,鈥� he says. But? 鈥淚 think now the culture change at St George driven through by Greg Fry, the way they鈥檙e now seen to the outside world, the perception of St George is immeasurably changed. It鈥檚 now designing some of the most fantastic places.

鈥淚 think St George was seen as a very difficult company to deal with. In planning terms it was seen that it didn鈥檛 listen. It used a very adversarial approach to land owners and to planners. The change in St George - that鈥檚 happened since September 2010 [when Carey departed].鈥�

Perrins uses the Carey situation as an example of the wider change he has tried to bring about. His aim has been to set a consistent level of quality and values across the group, while allowing the businesses - which include St George, St James and Berkeley Homes - to retain operational independence. He calls this his Vision 2020. 鈥淲e鈥檝e got about 100 sites across the group, ranging from one home to 4,000 units. What Vision 2020 is trying to ensure is that the same skill set and attention to detail goes in to everything we do. It鈥檚 about building sustainable places.鈥�

鈥業鈥檓 responsible鈥�

From the way he talks about planning, place-making, sustainable development, and 鈥渂usiness values鈥�, it is clear that Perrins sees part of his job as softening the red-blooded Berkeley brand. 鈥淚 think Berkeley got quite a lot of negative press, [though] it got a lot of positive press [too]. I think there were inconsistencies within Berkeley and I think we鈥檝e eliminated a lot of those.鈥�

But do vision documents and strategy discussions amount to real control of a company that was run by one man for so long? Yes, says Perrins - though it鈥檚 clear there鈥檚 still an element of partnership. 鈥淚鈥檝e worked in partnership with Tony for 25 years. Fundamentally he鈥檚 very good at some areas, I鈥檓 very good at others. Together you do what鈥檚 best for the company. But day-to-day running of the company? Yes, I鈥檓 responsible.鈥�

Has it been difficult stepping out from his shadow? 鈥淚鈥檝e never worried about taking over. What you mustn鈥檛 try and do is replicate him. Yes, we鈥檒l miss Tony when he鈥檚 gone. His character, his ability, his personality is a huge benefit - but the company will survive.鈥�

A supposed example of Pidgley鈥檚 genius is Berkeley鈥檚 鈥渂rave鈥� decision in 2004 to stop buying land it thought was over-priced, concentrating instead on winning large-scale regeneration projects from councils, with successes in Greenwich and Hackney, among others. This left the firm with cash to re-enter the land market with a vengeance when prices plummeted after the credit crunch, buying up scores of central London sites, including many along the Thames.

But while Perrins clearly has huge respect for his 65-year-old chairman, who he says will continue in the role as long as his health allows, he says others should share the credit for the Pidgley mythology. 鈥淭ony is the chairman. He is the outward face and has been. [But] there are 100 really good people [at Berkeley]. He is seen as the person that has called the cycle. [But] he鈥檚 called it by the good [quality] of the people in the company.鈥�

Celebrating success

With Berkeley embarked upon a 10-year programme of generating 拢13 in cash for every share, it is clear we shouldn鈥檛 expect major changes in strategy. The firm will remain split into distinct brands, each named after a saint. Indeed, Perrins is mulling adding more. 鈥淚鈥檓 very keen to get a ladies鈥� brand - I can鈥檛 think of the right ladies鈥� saint at the moment,鈥� he says, chuckling slightly. He has also been exploring the possibility of selling a raft of homes to an institutional investor to be rented on the private market, and managed by Berkeley, but doesn鈥檛 expect private rent to be a big part of firm鈥檚 future. (鈥淭hey鈥檇 shoot me in the City.鈥�)

The firm鈥檚 land-buying philosophy is to follow the opportunities, so in addition to buying London landmark schemes like One Tower Bridge, One Blackfriars and the Richard Rogers-designed Riverlight development in Nine Elms, the business has turned back the clock with one- and two-bedroom developments in the commuter belt. 鈥淲e exited our 鈥榲illage collection鈥� business in 2004. But now we鈥檙e back in, buying land in Surrey,鈥� he says, adding that he has appointed a new village collection managing director, and suggesting that it may become 10% of the firm鈥檚 business.

One area where Berkeley is still controversial is pay. Perrins, who earned almost 拢2m last year in salary and bonus, is part of a long-term incentive plan which could net the firm鈥檚 six board directors 拢280m in bonuses by 2021. He says the number is highly speculative, and defends the plan on the basis it is directly linked to the returns the shareholders get.

鈥淔or that number to be achieved, we鈥檒l have to be one of the top-performing companies in the country. If all companies performed that well you wouldn鈥檛 have a pension deficit, you鈥檇 have economic growth. At the end of the day if you鈥檙e wealth-creating, then you should celebrate success. Am I embarrassed about it? If I perform, no. And I don鈥檛 think I should be.鈥�

With the company鈥檚 share price sitting at a four-and-a-half year high, it seems the City, at least, is persuaded by his argument.

Photography by Tom Campbell