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Two large G15 landlords have announced they are in talks over a potential merger that would create a new 104,000-home association, one of the biggest in the country.
Today, Peabody and Catalyst have announced proposals to join forces, which if accepted could be completed as early as spring next year.
Consultations with residents will now take place throughout the summer and a decision will be made after that.
According to the plans, the proposals will see Catalyst joining Peabody as a subsidiary initially, with current Catalyst boss Ian McDermott taking over the new enlarged organisation.
Current Peabody chair Lord Kerslake will be designated chair of the merged organisation and Ravi Rajagopal, chair of Catalyst, will be designate vice-chair.
A statement from the organisations said that both boards believe there are significant benefits for residents if the two landlords join forces and that it would create a better locally focused organisation.
Catalyst currently operates in the London and the South East and owns and manages 37,000 homes. In May 2019, it completed a merger with 9,000-home Aldwyck Housing Group.
Peabody, which was formed by philanthropist George Peabody in the Victorian era, currently owns 67,000 in London and the South East and is one of the country’s largest associations.
The landlord also went through a merger process in March 2018, when it merged with Family Mosaic. It also added Town and Country Housing to its organisation as a subsidiary in November 2018.
If the landlords merge, the 104,000 homes it would own and manage would make it the second largest association in the UK after Clarion, which owns 125,000 homes.
Mr McDermott said: “We believe that we can go further and faster together. With our shared, aspirations and geographical reach, we can create an organisation which has customers at the front and centre of its thinking and planning.
“We will have a stronger local focus and be more connected with our communities. We can combine this with the benefits of scale and the ability created by the larger organisation. It is difficult to imagine two organisations with more closely aligned values and vision for the future.”
Lord Kerslake said: “Our new association will have around 100,000 homes, and I believe that this scale, combined with our local knowledge, will enable us to provide valuable insight from our residents’ experiences to help better inform policy and have a positive impact on life chances.
“We’ll look forward to working with government and partners to develop innovative solutions that improve services to customers, enhance building safety and reduce carbon consumption.”
More to come…