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Merger between London landlords edges closer as boards and shareholders approve plans
Two London landlords have moved a step closer to becoming a 70,000-home association.
In a short update to the stock market today, The Guinness Partnership and Shepherds Bush Housing Group (SBHG) revealed that both of their boards and shareholders have now approved the plans.
The tie-up remains subject to obtaining appropriate consent from third parties, with a further update being provided “on the timing of the merger in due course”.
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When the discussions were announced in April, it was proposed that SBHG would operate as a subsidiary of Guinness to ensure continuity for staff and residents while maintaining the SBHG brand and heritage across west London.
It is hoped that the tie-up will leave SBHG better placed to deliver more reliable and consistent investment in its existing homes at a greater pace, improve services and develop more affordable homes for the residents of west London.
Commenting on the latest update, The Guinness Partnership said: "Through the summer SBHA residents were asked to share their views on the proposed partnership, which demonstrated significant resident support for the proposals, and we are delighted that 96% of the Shareholder vote supported the partnership proceeding.
"By bringing our two organisations together SBHA will be better placed to deliver more reliable and consistent investment in its existing homes at a greater pace, improve services to customers and develop more affordable homes for the residents of west London."
Final consents from third parties are expected in the next few weeks with the expectation that the merger can be completed in December 2023.
At the time the talks were announced, Martin Hurst, chair of SBHG, said: “SBHG remains a viable independent business and following our downgrade by the Regulator of Social Housing last year, we have made great progress with our governance recently.
“We want to build on our progress to do more for our residents by investing in their homes [and] communities and building much-needed affordable housing, which will remain challenging if we stay independent.”
SBHG was downgraded to a G3/V2 grading in June 2022, which means it is non-compliant on governance issues.
In making its decision last year, the English regulator said it had identified issues that allowed the association to come “within weeks of a potential loan covenant breach”.
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