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East Anglian housing association acquires 5,000-home landlord
Two East Anglian housing associations have struck a deal to form the region’s largest landlord with a stock of around 28,000.
Flagship Group, which previously owned around 22,700 homes, has acquired 5,000-home association Victory Housing Trust as a subsidiary.
Victory has today joined the Flagship Group as a subsidiary after talks were first announced in March, retaining its branding and head office.
The organisations plan to build 10,000 homes over the next decade, supporting 400 new jobs.
And the group has outlined aims to invest £534m in maintaining and upgrading existing stock in the same period, with the merger driving more than £38m in savings.
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Peter Hawes, chair of Flagship, said: “We are both strong and successful housing associations, but together we can be even stronger and more successful.
“Collectively we have enhanced financial strength, greater effectiveness and efficiency, the ability to invest more in our existing homes, and support our customers.”
Victory’s chair, Philip Burton, has joined the Flagship board as vice chair.
Mr Burton said: “This is an exciting time for Victory as together we can deliver more affordable homes and better-quality services to our residents and our communities.
“The partnership will create organisational growth and also greater opportunities for individual growth and progression for our staff.”
Flagship said there will be no “compulsory redundancies” as a result of the acquisition for two years.
All of Flagship and Victory’s senior managers have remained, although some have changed their roles.
North Walsham-based Victory was formed in 2006 following a stock transfer from North Norfolk District Council.
It has its entire stock in Norfolk, with 90 staff and a £26m turnover. It currently builds around 200 homes a year.
Flagship has 866 employees and had a turnover of £133.7m in 2017/18, building 266 new homes including 212 for social rent.
Both Flagship and Victory have ‘G1/V1’ ratings from the Regulator of Social Housing, the highest possible grading.
Inside Housing defines deals involving a housing association joining a new group as a subsidiary as ‘acquisitions’. Mergers are where two providers join forces to create a new company with a new board.
The two organisations did not use the phrase acquisition in their publicity about the deal.
Update: at 12:59 02/01/19 more details were added to the story.
