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Housing association chair leaves after taking non-executive role with for-profit provider
The chair of a housing association has stepped down shortly after taking a non-executive director role at a for-profit provider backed by a giant Wall Street investor.
John Brace stepped down from chairing 4,500-home Cottsway last month following two years at the helm of the Oxfordshire-based landlord.
He had recently been appointed to the board of Sage Housing – a for-profit provider which is backed by giant equity investor Blackstone.
A spokesperson for Cottsway said Mr Brace left his role as chair “to concentrate on his other commitments in the housing sector”.
Sage declined to comment.
Neither organisation confirmed whether or not Mr Brace’s departure was linked specifically to his role at Sage. He has been replaced on an interim basis by board member Richard Purchase.
Sage was revealed to be involved in a tie-up with investor Blackstone in January this year.
It is targeting the purchase of affordable housing units sold by private developers through Section 106 deals and hopes to provide returns of 5%.
This sees it compete head-to-head with traditional housing associations in bids for these developments.
There is no evidence that Sage and Cottsway were in competition for the same sites.
Vivian Rosser, chief executive at Cottsway Housing, said: “John stepped down from our board in July to concentrate on his other commitments in the housing sector.
“Having joined Cottsway’s board in 2013, John has led the organisation as its chair for the last two years. He leaves the organisation in a very strong position, with the highest ratings for governance and financial viability from our regulator, a robust financial base, and a forward pipeline of 600 new homes.
“John’s strong and positive leadership will be sorely missed by fellow board members and staff, and we wish him all the best for the future.
“We have already appointed existing board member Richard Purchase as interim chair to continue John’s hard work. Richard, who has previously held a vice chair role of a strategic health authority and was chair of a large NHS trust, will act as interim until our recruitment process to find John’s replacement concludes this autumn.”
In May the National Housing Federation hit out at Sage, sending a legal letter requiring it to stop using the term ‘housing association’ to describe its business.
Blackstone responded by saying its work “brings more capital into the sector” and was a “win-win outcome – including for tenants”.
