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G15 landlords complete merger
Two large London housing associations have completed their merger talks to form a new 77,000-home landlord.
In updates to the stock market today, both Optivo and Southern Housing Group confirmed that the process has been completed and the two have merged under the name Southern Housing.
The landlords first revealed in March that they had begun merger talks. This kicked off months of engagement with residents, staff and external partners to feed into the discussions, in addition to a period of due diligence and negotiations between the two landlords.
Optivo’s chief executive, Paul Hackett, will lead the new organisation.
Mr Hackett told Inside Housing in April that one of the drivers behind the merger was an increasingly challenging operating environment, in part caused by inflation.
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He also highlighted the challenges of building safety, alongside net-zero carbon targets, achieving an average energy performance certificate (EPC) rating of band C for all its homes by 2030 and decarbonisation by 2050.
At the time, Mr Hackett said: “We believe that by coming together, we can be a stronger and more resilient organisation. We believe that by investing in scale, we can do the best job. We can improve the way that we invest in our homes and look to potentially accelerate our programmes.”
Sir Peter Dixon, chair of Optivo, will become chair designate. A vice-chair will be appointed from Southern’s board.
In October, it was announced that Tom Paul had been appointed as an executive director of the new landlord.
Mr Paul was Optivo’s director of treasury and commercial, but has now been promoted to executive director of strategy and change at the new-look Southern Housing.
Mr Paul said: “I’m delighted to be joining the executive team of the new Southern Housing. Economic uncertainty and the housing and climate crises mean housing associations need to think differently, form new partnerships and reimagine their service offers."
Commenting on the merger’s completion, Mr Hackett said: “Our aim is for this merger to be different to those that have gone before. Yes, we’ll be a larger organisation with 77,000 homes. But – by virtue of our similar geographies – we’ll also become more local.
"Consolidating our stock, colleagues and services means we’ll deepen ties in our key communities. Our denser footprint also means we’ll be a bigger, more strategic presence in more local authorities. We’ll use that status to increase our social impact, whether that be developing new homes for those in housing need or investing in the health, wealth and wellbeing of our residents."
He pledged to put residents at the heart of the new enlarged association.
Mr Dixon added: “Our residents are at the sharp end of the cost-of-living crisis. We’ll use our improved financial resilience to enhance services at a time when many will be seeking to make cutbacks. That starts with getting the basics right, most of all repairs, but it will also mean increasing investment in digital services to modernise and streamline how we interact with residents."
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