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Why we have decided on a large merger
As Genesis and Notting Hill Housing shareholders prepare to vote on their merger today, we re-publish a piece from chair designate, Dipesh Shah, explaining the thinking behind the plans.
This article was originally published on 25 July last year
Last week we made the exciting announcement that Genesis Housing had agreed a merger in principle with Notting Hill Housing that would create one of the largest housing associations in the country.
We’ve been working towards this for some time and we were delighted to finally be able to tell our staff, residents and stakeholders the news, which we feel will bring great benefits for all involved.
So far the reaction has been overwhelmingly positive and I feel that is largely because we are such a good match.
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We were both founded in the 1960s in west London by local people with a shared vision – to house west London’s working poor and provide them with a home from which they could build a secure future for themselves and their families.
“We can achieve more as a larger organisation than we could alone.”
More than 50 years later, we each employ a similar number of people, own and manage a similar amount of stock and have comparable levels of turnover. This is truly a merger of equals.
We have both grown, spread out geographically and built up our commercial interests – but what is vitally important to us all is that our core purpose has remained the same.
We exist to provide homes for low-income households in London and the South East. It’s what we are passionate about and what Notting Hill Genesis will continue to deliver.
So far, we have agreed that I am chair designate of the new entity, Kate Davies of Notting Hill Housing is chief executive designate, and Elizabeth Froude of Genesis is deputy chief executive designate.
Our shadow board will have equal representation from Genesis Housing and Notting Hill Housing, as is right for a merger of equals.
The shadow board will lead us through the merger process, while our existing boards will continue to operate as they do now.
Both parties believe we can achieve more as a larger organisation than we could alone.
Together we will have combined reserves of £3.1bn and loan facilities of £3.5bn, with a turnover of £700m, as well as real influence when it comes to engaging with London boroughs and the Greater London Authority.
As a single, stronger entity we will be able to deliver around 2,700 new homes a year, 400 more than we’d have been able to achieve separately.
“We will ensure that local focus is not lost.”
The merger will also improve our capacity to deal with changes in policy and prevent major events such as the tragedy at Grenfell Tower.
We are both involved in major regeneration projects in partnership with London boroughs, and sharing our experience in developing mixed communities will benefit current and future schemes.
However, while we strive to be a stronger, more innovative and more influential organisation, it is important that our residents know that we are still as committed as ever to providing them with the level of service they want and expect.
We fundamentally believe in providing tenants with a local service and we will ensure that local focus is not lost – a determination I know is already shared throughout both businesses.
To that end, we will both be undertaking a period of engagement throughout the summer and beyond so residents can have their say in shaping how Notting Hill Genesis will operate.
We will also prioritise becoming the best digital provider of housing services by investing £10m in modernising and automating services to give customers more choice and make it easier to interact with us.
Our increased size will also give more choice for our tenants and help them to move even more easily as their circumstances change.
It is a great honour to be taking on the role of chair of Notting Hill Genesis and I look forward to helping the organisation on its journey.
Our common culture and shared values give us a real head start in making this merger a success for the new entity, for staff, for residents, for shareholders and for London.
Dipesh Shah, chair designate, Notting Hill Genesis
