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Housing associations abandon partnership talks
Two major housing associations have ended talks into a potential partnership nine weeks after they were announced.
A2 Dominion Housing Group and Radian Group – which together own 57,000 homes across London and the South of England – announced formal discussions in a stock market update on 14 November last year.
But the landlords confirmed today that talks between the boards had ended.
In a joint statement, they said they have “mutually agreed that at this stage it would be preferable to continue to deliver their respective strategic plans and transformation programmes independently”.
A planned consultation with residents will now no longer go ahead.
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“This is of course disappointing, but having carried out further discussions with A2 Dominion it has become apparent that our approaches, particularly around technology, are different and the focus of both organisations must be the service we provide to our customers,” said Mick Sweeney, chief executive of 21,000-home Radian.
“Although talks around a partnership have ended, the work we have done with A2 Dominion so far has established good working relationships and we will be looking to work together on future opportunities which were being discussed last year.”
Darrell Mercer, chief executive of A2 Dominion, said: “In reviewing the detailed plans and options, we came to the conclusion that the timing and complexity of implementing a simultaneous transformation programme could significantly put at risk the successful delivery of the new partnership’s business strategy.
“It was important for both organisations that this decision was made well ahead of our intended launch date of early 2019.”
Radian turned over £135.1m in 2016/17, with an operating surplus of £60m and a surplus of £35m.
In the same financial year A2 Dominion turned over £371.9m with an operating surplus of £119.9m and a surplus of £84.1m.
A2 Dominion completed 754 homes and started 868, while Radian completed 418 and started 742.
Update: at 13.01pm, 23/01/18: A comment from Mr Mercer was added to the story.
