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Clarion amalgamates Circle subsidiaries
The UK’s largest housing association has completed the amalgamation of a complex group structure, with the exception of one east London association at the centre of a repairs storm last year.
The Financial Conduct Authority has given its consent for Clarion’s merger #ukhousingThe largest housing association in the country has FCA consent for its merger #ukhousingFCA consent draws a line under the mega-merger that formed Clarion in 2016 #ukhousingClarion Housing Group was formed through the merger of Affinity Sutton and Circle Housing in 2016 to form a mammoth 125,000-home association based in London.
Circle was due to complete the amalgamation of its seven asset-owning group boards into a single organisation under the Circle 33 banner following the merger.
In a stock exchange announcement last week, Clarion announced that this process had almost completed, with the amalgamated Circle 33 board merged into Clarion to form a single organisation.
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The only outstanding organisation is Old Ford, a 4,000-home member of Circle Group, based in Bow, east London.
This association was at the centre of a repairs scandal which engulfed Circle ahead of the merger, leading to regulatory intervention and debates in parliament. It is understood that tenants had previously considered seeking the right to self-manage the estates and break out of Circle Group.
However, a spokesperson for Clarion said: “We continue to work with the Old Ford board to consolidate the association into Clarion Housing Association.”
Clarion operates across 176 local authority areas with plans to build 50,000 homes over the next 10 years.
Clarion’s size has already allowed it to launch a £3bn debt programme, initiated in October last year, from which it can draw down funds whenever it likes.
Its half-year results, released in December last year, revealed growth in its surplus and turnover, with its total sales margin rising.
Clarion also recently appointed Ruth Cooke as its new chief executive following the announcement of Keith Exford’s retirement.
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