Large London associations announce latest mega-merger plans

In the latest in a spate of large merger deals in the sector, talks have reached an advanced stage with the formal merger expected to complete in July 2017.

In a joint statement, Lord Kerslake, chair of Peabody, and Ian Peters, chair of Family Mosaic, said: “Our combined scale and London focus will enable us to do more together than we could achieve alone.”

They said the merged landlord would “make a significant contribution to addressing London’s housing crisis through effective placemaking”, including the regeneration of Thamesmead, the 1970s new town in south-east London.

The new landlord would commit to providing housing “genuinely affordable for those on lower pay” and care and support services to encourage independent living.

Post-merger, the new organisation will keep the Peabody name but will be led by Brendan Sarsfield, chief executive of Family Mosaic.

Lord Kerslake will become chair and Mr Peters will be vice chair. Stephen Howlett is to retire once the merger is complete after 12 years heading Peabody.

A joint statement from the two landlords said: “Family Mosaic and Peabody are an excellent fit – we share the same values and are seeking the same outcomes for our residents.

“This will give us far greater capacity to do more to benefit those in greatest need. We will be able to deliver a housebuilding programme that we couldn’t achieve by ourselves.”

The merged entity will have 55,200 homes, occupied by 111,000 residents, and 3,606 staff.

Combined turnover for 2015/16 would be £618m, with a surplus of £191m and a development pipeline totalling 11,825 homes. 

This is the latest in a series of large mergers, which is reshaping the sector. L&Q and East Thames formally merged yesterday, while simultaneously announcing a £2.6bn refinancing deal.

Amicus Horizon and Viridian are to complete their merger early in the new year, while Affinity Sutton and Circle Housing have combined as Clarion Housing Group.