BERKELEY Group Holdings Plc, the United Kingdom's second-largest home builder by market value, plans to exploit "numerous opportunities" in British land market as it builds up cash and competitors cut purchases.

Cash generation is ahead of plan, allowing Berkeley to identify acquisitions "on a selective and opportunistic basis," the Cobham, England-based company said yesterday in a statement obtained by Bloomberg News.

Berkeley deferred a dividend payout to investors to build up cash and take advantage of falling land values amid Britain's biggest housing slump in 25 years.

The company exited volume home building in 2004 to focus on less capital-intensive developments, resulting in stronger earnings and lower debt than its peers. Other UK competitors have cut back or halted land purchases as a slump in housing demand hurts sales and cash generation.

"They're in a pretty unique position in terms of the firepower they have," Kevin Cammack, an analyst at Kaupthing Bank, said.

"They're virtually the only house builder without any gearing, and are well ahead at this stage of the game."

Cammack, who has a "buy" rating on the stock, said as much as three- quarters of the deferred shareholder payment would be used to buy land.

Berkeley has lost 25 percent of its value in London trading this year, compared with a plunge of more than 70 percent at larger-volume and more-indebted rivals Taylor Wimpey Plc and Barratt Developments Plc.