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London landlord acquires property management firm Pinnacle Group
G15 landlord Hyde has acquired property management firm Pinnacle Group in a move it described as a “game-changing moment for the housing sector”.
The value of the deal has not been disclosed but Pinnacle’s profit topped £23m in its latest financial accounts.
Hyde, which owns 45,000 homes, said the acquisition is a fundamental part of its strategy to transform itself into a leading national housing and property services management organisation.
The landlord said its charitable and social purpose will be unchanged, and all the surplus Hyde generates will be reinvested in its communities.
Pinnacle will operate as a standalone subsidiary within the Hyde Group, retaining its unique identity, client relationships, executive management and operational teams.
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The enlarged group owns and manages around 120,000 homes across all tenures, and provides neighbourhood services to around 350,000 homes.
This is alongside work it does with a large number of schools, universities, councils, housing associations, the emergency services and private sector organisations.
Andy Hulme, chief executive of Hyde, said: “We’re delighted to be welcoming Pinnacle colleagues, customers and clients into the Hyde Group. This is a game-changing moment for Hyde, our current and future customers, and the wider housing sector.
“By combining our shared knowledge and expertise, we’ll be able to accelerate our growth and improve our services to both build and create communities that people can be proud of. By prioritising communities and embracing innovation, we’ll simultaneously improve service delivery to existing customers and accelerate access to the market-leading services we offer, meaning we can do more, for more communities, and play our role in support of the government’s housing strategy.”
In August, Hyde reported a drop in its surplus of more than three-quarters year on year in its results for 2023-24, and a fall in starts of 61%.
The combined group will operate across 200 sites and bring together more than 5,000 employees.
The London landlord believes the enlarged organisation will provide “a unique platform that builds on Hyde and Pinnacle’s combined expertise in attracting large-scale institutional capital to invest in the affordable housing sector”.
It hopes this will drive the expansion of Hyde’s housing services platform to private and public sector clients at a national level, supporting the delivery of homes across all tenures, with a focus on affordable homes.
Perry Lloyd, chief executive of Pinnacle, said: “We are excited to join forces with Hyde Group, a partnership that will amplify our impact across all living sectors, including affordable housing.
“By combining our strengths, we can innovate more effectively and deliver high-quality, well-managed homes and communities nationwide. This collaboration marks a significant step forward in our shared mission to ensure we meet the evolving needs of new and existing communities, customers and clients.”
This deal comes around two months after Hyde started talks to take on a fellow London housing association that is currently non-compliant with the regulator’s standards. Hyde is exploring a “business combination” with Tower Hamlets Community Housing (THCH).
THCH, which operates around 3,200 homes in Tower Hamlets, was handed ratings of G3/V3 last year after the regulator found it was unable to meet the costs of its day-to-day operating activities and repair liabilities.
Hyde said a partnership with THCH would bring “stability” to the landlord.
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