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Housing 21 steps up expansion push with 1,567-home deal
Retirement and extra-care specialist Housing 21 has completed its largest ever acquisition by taking on 1,567 properties from a neighbouring Birmingham-based landlord.
The association announced today it has acquired 23 schemes from Midland Heart. It will see around 1,600 residents and 137 staff transfer over to Housing 21.
The amount Housing 21 paid for the properties was not disclosed.
As a result of the deal, the landlord said it now has more than 10,000 extra-care properties. It also has a 14,000-strong retirement living portfolio.
In the past 18 months, Housing 21 has been expanding rapidly and acquired 970 properties from other landlords.
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In February last year, the landlord acquired seven extra-care schemes from Notting Hill Genesis for £61m as part of its ongoing expansion into London.
It also acquired 11 schemes, consisting of 444 extra-care properties, from Clarion last year.
In July this year, Housing 21 bought 42 properties from Rooftop Housing Group.
The association is also aiming to build 400 new extra-care and retirement living homes annually.
Tony Tench, deputy chief executive of Housing 21, said acquisitions are a “key part” of its “growth agenda”.
He added: “As some housing associations are choosing to re-focus on general needs, Housing 21, as a specialist provider of housing for older people, is keen to acquire properties and ensure they remain a positive choice for residents, providing the safe, quality and affordable homes they deserve.”
Housing 21 said care services at the schemes being transferred will remain unaffected as they are delivered by third parties.
Joe Reeves, executive director of finance and growth at Midland Heart, said the deal would allow the association to focus on its “core purpose” of operating general needs homes. This will include building more homes and investing in its stock.
As part of this, around 6,000 homes will be upgraded to have an Energy Performance Certificate rating of C by 2030. Midland Heart currently operates around 35,000 homes across the Midlands.
At the end of last month, Housing 21 reported a 21% jump in post-tax surplus to £11.8m in its last full-year, helped by an increase in turnover to £274.9m.
However, it saw its income from shared ownership nearly halve to £10.7m.
Last year, the landlord unveiled a shake-up of its executive team in a bid to be “more responsive” to its residents’ needs.
In February, it appointed Gurpreet Dehal, a former investment banker, as its new chair. But he resigned three months later.
Mr Dehal was replaced by existing board member Elaine Elkington, who was also previously the interim head of the Kensington and Chelsea Tenant Management Organisation in the wake of the Grenfell Tower fire.
