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Newly merged G15 landlord to explore merging subsidiaries
Peabody has announced plans to consolidate parts of its operations following the merger with fellow London landlord Catalyst, by allowing two of its subsidiaries into just one body.
Catalyst and Peabody completed their merger on 1 April this year to create a 104,000-home landlord operating across London and the South East.
The merger also meant that Peabody now manages both Town & Country Housing and Rosebery Housing Association as subsidiaries, which according to the association have “complementary areas and strategic goals”.
Peabody now aims to analyse how both organisations could be brought together under one banner.
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In a statement to the stock market, Peabody said: “In the next year we will be exploring how we could bring the businesses closer together and subject to all necessary consultation and consents, consider transferring Rosebery Housing Association assets and operations to Town & Country Housing in 2023.”
As part of the initial merger deal signed off in April, Catalyst – which owns 37,000 homes – became a subsidiary of Peabody. It came just a year after Catalyst had taken over 2,700-home landlord Rosebery, which largely operates in Surrey and West Sussex.
The 10,000-home landlord Town & Country became a subsidiary of Peabody in 2019 after a takeover. Town & Country operates largely in Kent and Sussex.
The new organisation previously announced that it intends to take a local approach and put in place a regional structure to oversee the sprawling housing operation.
It will have six managing directors responsible for individual geographical locations and each will have overall responsibility for the delivery of services in that area.
The organisation has also committed to £11m of community investment every year.
Ian McDermott, former chief executive of Catalyst, became the boss of Peabody in October, taking over from Brendan Sarsfield, who stepped down after four years of leading the organisation.
Mr McDermott said that customers “will be front and centre” of the new housing association.
Last month Peabody signed up to a £75m loan from the UK arm of Dutch bank ABN AMRO. The deal includes stipulations that would reduce the cost of borrowing if the housing association makes its leadership team more ethnically diverse and improves the environmental performance of its homes.
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