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Associations plot merger to create largest North West landlord

Two North West housing associations are in talks over a merger which would create the largest social landlord in the region.

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Liverpool, where the associations are based
Liverpool, where the associations are based
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Associations plot merger to create largest North West landlord #ukhousing

Torus and Liverpool Mutual Homes are planning to merge #ukhousing

Torus and Liverpool Mutual Homes (LMH) confirmed to Inside Housing today that they are in talks over an amalgamation to create a social landlord with 38,000 homes.

The new association would have a joint turnover of £190m and employ 1,400 people.


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In a joint statement Rob Young, chief executive of Torus, and Steve Coffey, chief executive of LMH, said merging could give the landlords greater financial capacity.

“We are delighted to be exploring this exciting opportunity. Both Torus and LMH Group are stock transfer organisations with a strong neighbourhood focus. We remain totally committed to the customers and communities that we serve,” the statement added.

“The geographical fit between the two organisations would create a very strong footprint across both the Liverpool City Region and Cheshire, enabling us to make a positive long-term impact on the regional economy, creating growth and opportunity.

“But together we would have and create greater financial capacity. This would allow us to invest more in neighbourhoods, delivering services that make a big difference to people’s lives. We would become one of the largest house builders in the North West, providing thousands of homes across the North West, meeting housing need now and in the future.”

The boards and management of the two associations will be considering the merger over the coming months. Should talks progress positively, it is anticipated a final decision will be announced in the spring.

Torus was formed through the merger of Helena Partnership and Golden Gate Homes in April 2015. It owns 22,000 homes and turned over £109m in 2016/17.

LMH was established following a stock transfer from Liverpool Council in 2008 and now owns 16,000 homes in the city. It turned over £76m in 2016/17.

The combined association would have a surplus of £58.4m, an operating margin of 37.6% and total debts of £236m, based on 2016/17 accounts for both associations.

IN NUMBERS: THE POTENTIAL MERGER

Homes owned Turnover Costs Operating margin (%) Surplus Debt
Torus 22,000 £109m £68.6m 37.1 £24.9m £117m
LMH 16,000 £76m £46.9m 38.3 £33.5m £119m
Combined 38,000 £185m £115.5m 37.6 £58.4m £236m

 

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