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L&Q in £4bn plan to acquire Manchester housing association
London’s largest housing association L&Q is in talks over a £4bn plan to acquire Manchester housing association Trafford Housing Trust, it announced today.
It told the stock market it intends to build 20,000 homes – at least half of which will be affordable – in the North West over the next 10 years, investing £4bn in the region.
This would be a significant contribution to L&Q’s overall plan to build 100,000 homes a year over the next 10 years.
The two organisations are currently in talks to see Trafford become a wholly owned subsidiary of L&Q. It expects to complete the acquisition in June.
According to a statement from L&Q, it plans to make savings over time by “removing duplication and increasing efficiencies”.
It added: “The acquisition is focused on investment and growth and there will not be any compulsory redundancies as a direct result of the acquisition.”
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David Montague, chief executive of L&Q, said: “L&Q has an ambitious plan to build 100,000 quality new homes over the next 10 years to tackle the national housing crisis. We see [Trafford] as a gateway to the North West, an area of outstanding growth that needs more high-quality, affordable homes.
“We are excited by the opportunity to invest in the North West with a partner that shares our social purpose, values and ambition, has excellent local knowledge and a strong reputation for innovation and delivery.”
Matthew Gardiner, the current chief executive of Trafford who is currently on secondment as L&Q’s head of ideation, will step down as chief executive to be replaced by Larry Gold, acting chief executive.
Mr Gardiner’s role at L&Q innovation projects will now become permanent and Trafford’s chair, Edna Robinson, will join L&Q’s board.
Mr Gold said: “This is a unique creation that will be built on true partnership and the strength of our vision and the people who will deliver it. As part of L&Q, we’ll create significant social impact in the North West at scale and pace and strive to find solutions to the national housing crisis.
“We will deliver an extensive programme of new development and regeneration projects, as well as improving homes and services for our existing customers.”
L&Q and Trafford already have a joint venture partnership to build 2,000 homes in the North West, 679 of which have already been started.
Both organisations said at the time that the plan was to combine L&Q’s financial strength and development expertise with Trafford’s local knowledge and connection with the community. Today’s statement suggested the same motivation was behind the decision to acquire.
As well as building new homes, L&Q will put £2m into improving Trafford’s existing homes – modernising, repainting and fitting carpets.
The 90,000-home association said that it will also work closely with local authorities in the North West to ensure that new and existing homes meet local needs and that this will include “homes for the over-55s and those with specialist needs”.
