The Berkeley Group鈥檚 shareholders have given the housebuilder approval to form three joint ventures worth 拢1bn with its biggest investor, Saudi Arabian firm Saad Investments.

The joint ventures 鈥� a land fund, a development company and a property investment company 鈥� will enable Berkeley to build up its landbank in the UK. Berkeley will invest up to 拢175m in the ventures. It believes that if it invests the maximum amount, together with Saad鈥檚 investment and external bank loans, a fund of about 拢1bn will be available. Saad has a 29% holding in the housebuilder.

The deal will enable Berkeley to plan development in the long-term and overcome the need to obtain planning consents quickly. Investment in the joint ventures is expected to occur over a 10 year period.

The deal follows joint ventures between Berkeley and Saad in the 1990s. These included Saad Berkeley Investment Properties, Berkeley Eastoak Investments, and Saad Berkeley, a residential developer that is still operational.

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