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Aster announces plans to merge with London-based care specialist housing association
Large southern housing association Aster Group has announced plans to merge with a London-based care specialist landlord.
It hopes the business case to join forces with Central & Cecil Housing Trust (C&C) will gain board approval from the two organisations in the autumn.
Wiltshire-based Aster currently owns and manages more than 32,000 homes across the South of England, mainly in the South West, with no stock in London.
C&C manages a stock of around 1,850 homes in the capital, focusing on providing housing and care for people aged over 55.
The pair said a combined organisation would have the capacity to deliver 12,000 new homes by 2030 through £2.5bn of investment, as well as spending £571m on maintaining and upgrading existing stock.
C&C, which was founded in 1926, would retain its brand and stock and there would be no interruption to services for residents of either landlord.
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Bjorn Howard, chief executive of Aster, said: “Social housing will play a central role in our nation’s recovery post-COVID-19 and it is essential that we are in the best possible position to build much-needed new affordable homes and offer vital services to a diverse range of customers.
“Our partnership with C&C would help us achieve both of those fundamental ambitions and see us provide access to quality, affordable homes in central London for the first time in our organisation’s history.
“C&C’s expertise would help to further evolve the services the group as a whole offers to customers and as a combined business we would have greater scope for innovation, and in the transformation of digital services as well as providing employees with a strong and competitive offer.
“The expanded capacity created by the partnership will also enable us to invest more in new and existing homes than either organisation could alone.”
Julia Ashley, chief executive of C&C, said: “This merger would present a fantastic opportunity for C&C to meet the growing demand for over-55s housing and care in London and beyond.
“By partnering with an organisation that shares our values and aspirations, we could invest far more in our homes, services, colleagues and new technologies, and be even more ready to meet a growing demand.”
The 12,000 new homes would include 700 for older people.
The housing association sector is currently seeing a spate of merger announcements as landlords face up to huge investment challenges in the coming years, largely because of building safety and decarbonisation obligations.
Earlier today, Riverside announced that it is in talks to take on G15 landlord One Housing Group as a subsidiary.
Just 18 months ago, Aster merged with small Dorset-based landlord East Boro Housing Trust.
If the merger with C&C goes ahead, the group will have a stock of around 34,500.
Aster currently employs around 1,450 people and C&C has a staff of just under 300.
The former has the top regulatory grading of G1/V1, while the smaller organisation is graded G1/V2.
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