Lend Lease buys Crosby for £261m

Lend Lease has bought the Crosby Group from Berkeley Group for £261m.

Lend Lease chief executive Greg Clarke said: "There are many opportunities for us in the highly specialised area of master planned communities and urban regeneration in the UK over the next 20 years.

"Lend Lease is very well-positioned in the high growth London and South East residential markets, and Crosby is a respected brand with a 70-year history and strong market positions in major regional centres in the Midlands and the North."

Crosby has 18 principal sites with a backlog of around 4,500 units including joint ventures. Its turnover was £229.8m in the year to 30 April 2004, with pre-tax profit of £18.8m. Crosby's management team, including chief executive Geoff Hutchinson, will join Lend Lease.

The transaction is expected to be completed in early July. Berkeley will use the cash to pay off its £100m revolving credit facility.