Berkeley’s modular building machinery put up for auction valued at £30m

Berkeley’s entire portfolio of modular building machinery has been put up for auction with a price tag of £30m.

The housebuilding giant owned a large purpose-built facility in Kent, which it has previously claimed could produce up to 1,000 finished modular homes annually.

Berkeley refused to comment on the sale, but Housing Today understands that the auction was for machinery only and that the factory itself will be sold at a later date.

Asset disposal specialist BPI concluded the auction on Monday, although it has not revealed whether the £30m valuation was realised.

According to the auctioneer, the sale of the assets followed a “business restructure”, with a report by Modular Monitor suggesting that the housebuilder was pulling out of the volumetric sector.

It follows the failures of other volumetric firms, including Ilke, L&G Modular, TopHat and House by Urban Splash.

Berkeley first announced plans for a modular factory in 2017. The facility in Kent, which was designed by UMC Architects and purpose built by Readie Construction, began commissioning in 2020.

166,000 sq ft manufacturing facility was based on the Northfleet Embankment in Ebbsfleet.

On the day of their ill-fated “mini-Budget” in 2022, then-prime minister Liz Truss visited the factory with her chancellor Kwasi Kwarteng.

A test bed application of its first modules was completed at Kidbrooke Village in Greenwich, with 96 units installed, and as recently as February 2023, Berkeley was submitting plans for a second facility on the Kingsworth Industrial Estate in the Hoo Peninsula.

But by July of that year it announced it was not putting the Kent factory into full production, citing “the decision of other parties to exit the industry due to the costs and efficiency impact of regulatory and planning uncertainty on a stable production pipeline.”

Rob Perrins, chief executive, said: “Berkeley’s immediate focus is on evolving the product to remove cost, weight and complexity while continuing to work with the numerous statutory bodies to achieve the various regulatory approvals required for efficient future delivery”.

Monday’s auction had more than 500 lots, including a diverse range of specialist equipment.

James Mellars, key account director at BPI, said before the sale: “This auction is a rare opportunity for businesses in the modular building and construction sectors to secure premium equipment and tools at exceptional value.

“Whether upgrading, expanding or investing in high-quality machinery, this sale offers a cost-effective way to enhance operational efficiency and future-proof production.”