Berkeley Group has put its entire portfolio of modular building machinery up for auction, with an estimated value of £30 million. The sale, handled by asset disposal specialist BPI, concluded on Monday, though it remains unclear whether the full valuation was met.
The auction included over 500 lots of specialist equipment, but the factory itself—located in Kent—will be sold separately at a later date.
Shift Away from Modular Construction
The move follows a reported “business restructure,” with industry sources suggesting Berkeley is exiting the volumetric modular housing sector. This decision aligns with broader industry struggles, as other major firms—including Ilke, L&G Modular, TopHat, and House by Urban Splash—have also faced difficulties.
Berkeley first unveiled plans for its modular facility in 2017. The 166,000 sq ft factory in Northfleet, designed by UMC Architects and built by Readie Construction, was expected to produce up to 1,000 modular homes annually. It began commissioning in 2020, with an initial project at Kidbrooke Village in Greenwich, where 96 units were installed.
Despite plans for a second facility in the Hoo Peninsula, Berkeley announced in July 2023 that it would not proceed with full-scale production in Kent. The company cited regulatory uncertainty and planning inefficiencies as key factors in the decision.
Future Direction for Berkeley
Chief Executive Rob Perrins stated that Berkeley’s focus now is on refining modular designs to reduce cost, weight, and complexity while navigating regulatory requirements.
The auction presented an opportunity for other firms in the sector to acquire high-quality modular construction machinery. “This is a rare chance to secure premium equipment at exceptional value,” said James Mellars, key account director at BPI.
As Berkeley moves away from large-scale modular home production, the industry continues to grapple with challenges that have led to the collapse or retreat of multiple firms in the sector.