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Large London-based housing association Catalyst is in talks to acquire fellow housing association Aldwyck.
The London-based 21,000-home association confirmed today that formal discussions are under way with Bedfordshire-based Aldwyck.
The deal, expected to complete next April, would see 9,000-home Aldwyck become a subsidiary of Catalyst. It is understood staff at both groups were told this morning.
As a combined entity, the associations intend to build at least 1,300 homes a year across London and the home counties. Last month, Catalyst was among the groups named on the new £20bn London Development Panel to accelerate housebuilding on public sites.
News of the deal comes two months after Aldwyck’s chief executive, Ian McDermott, was named as Catalyst’s new boss. Mr McDermott is due to leave Aldwyck at the end of this year and will replace the London group’s retiring boss Rod Cahill.
Richard Brown, chair of Catalyst, said: “Beyond the geographical synergies, a unified Catalyst and Aldwyck would be in a strong position to build on existing shared core strengths in development, regeneration and place-making, and by pooling our experiences and resources make faster progress in our journey to provide really excellent service to our residents.”
Pat Billingham, chair of Aldwyck, added: “Our organisations share common aims, values and cultures, and by joining forces we can create an enhanced offer for our customers as well as increased career development opportunities for colleagues.”
It is unclear at this stage whether the deal will lead to any redundancies.
Aldwyck itself acquired Cambridgeshire group King Street Housing earlier this year.
Based on its most recent published accounts, the new organisation would have a turnover of £293m and an operating margin of 33%. It would have a combined surplus of £76.7m and total loan facilities of more than £1.6bn.
Inside Housing regards a deal where one housing association becomes a subsidiary of another as an acquisition. The two organisations describe this deal as a ’merger’.