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Peabody and Catalyst confirm mega-merger on track after residents’ consultation
Peabody and Catalyst have said their mega-merger remains set to complete next spring after both boards agreed the deal following a residents’ consultation.
The two landlords, whose combination will create a 104,000-home association, said the agreement had been reached following board discussions and a six-week consultation with residents.
Catalyst will become a subsidiary of Peabody on 1 April next year, subject to the consent of lenders and approval from Catalyst shareholders, the associations said in a market update today.
“Positive discussions with lenders have already begun,” the filing said.
The new entity, covering London, Kent, Sussex and the Home Counties, will become the UK’s second largest social landlord.
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Ian McDermott, chief executive of Catalyst, will take over as Peabody’s boss on secondment from tomorrow (1 October) and lead the new entity once the deal completes. He takes the reins at Peabody from Brendan Sarsfield, who is stepping down today after four years leading the organisation.
Mr McDermott said: “I would like to thank everyone who has taken the time to give us their views during this process. We have heard what you have told us. Customers will be front and centre of the new organisation, and we will be absolutely committed to investing in our local communities.”
Writing for Inside Housing earlier this month, Mr McDermott revealed plans for a new “neighbourhood model” for the new entity. This would be overseen by “empowered” regional managing directors who would have “access all areas” to ensure tenants are getting good customer service, he said.
The newly merged association board will be led by Lord Kerslake, Peabody’s current chair and the former head of the civil service.
The organisation will have an annual turnover of around £900m and oversee around 220,000 residents.
