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Large housing associations complete deal to create 32,000-home giant
London-based housing association Catalyst has completed its deal to merge with fellow landlord Aldwyck to create a 32,000-home association.
The deal, announced last September, will see 9,000-home Aldwyck become a subsidiary of 21,000-home Catalyst.
A Catalyst spokesperson told Inside Housing that its intention “was to try to carry out the merger without any compulsory redundancies”.
Aldwyck, which is based in Houghton Regis in Bedfordshire, will also continue to have an office there, the spokesperson added.
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As a combined entity, the associations aim to build 1,300 homes a year across London and the Home Counties by 2022.
Ian McDermott, chief executive of Aldwyck, moved across in January to become chief executive of Catalyst, as a replacement for former boss Rod Cahill.
Yesterday it emerged that Mr Cahill has been appointed interim chief executive of Sage Housing, which is owned by US private equity giant Blackstone.
In February, Mr McDermott appointed four new executives as part of a restructure. In January, it emerged that Rachael Dennis, chief operating officer at Catalyst, is leaving to join Taylor Wimpey.
Today Pat Billingham, vice-chair of Catalyst and former chair of Aldwyck, said: “At a time when the housing crisis is almost daily headline news, our combined strength and expertise will enable us to fulfil our shared ambition to provide more homes to meet the housing need in our newly enlarged geographical area.”
In a statement, Catalyst said the groups will “integrate fully” over the coming months.
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.
