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Sanctuary agrees merger with Northern landlord
Sanctuary has agreed to merge with a 5,000-home Northern landlord.
The 120,000-home association has confirmed a tie-up with Johnnie Johnson Housing Trust (JJH), whose properties are located across the North West, North East, Yorkshire and Derbyshire.
Sanctuary said that its proposed business combination has now been agreed by the boards of both organisations.
Yvonne Castle, chief executive of JJH, will step down from her role in December. Kathryn Fox-Rogers will lead Sanctuary’s JJH subsidiary in the role of managing director.
The agreement followed a “detailed” due diligence process, the results of which were presented to the boards for consideration.
Completion of the transaction will be subject to obtaining appropriate consents, Sanctuary added.
Partnership discussions between the landlords were first announced in June.
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The merger is Sanctuary’s second of the year. It completed a rescue of troubled housing association Swan in February 2023.
JJH has a G1 governance grading and a V2 financial viability grading following its last review by the Regulator of Social Housing in December 2022.
In its latest financial statements, for the year ending in April 2022, JJH recorded a lower surplus of £382,000 and saw its operating margin reduce five percentage points to 13%.
The association attributed this to “delays in the development programme impacting turnover, alongside increased void properties and higher costs than anticipated”.
JJH was set up in 1969 by James Edgar Johnson, a pilot who flew in the RAF during the Second World War. The housing association has maintained a close connection to veterans and the armed forces.
Craig Moule, chief executive of Sanctuary Group, said: “There is space for organisations of any size in our sector and there are many organisations who provide excellent services to a single community, or a small number of neighbouring communities, but do not have the capacity to make significant investment in their existing homes or develop new homes.
“As one of the largest providers in the sector, we use our size and strength to invest and develop, to be efficient, while maintaining local, community-focused services.”
Ms Castle said: “We always look to provide the best possible service and make sure we are focused on what matters most for our residents – providing homes that they love to live in.
“We always want to do more. We are ambitious as experts in the field of providing homes and services, including Astraline’s Technology Enabled Care, for older residents. We know that through joining Sanctuary we will be able fulfil our ambitions and invest more in our residents’ homes than we could on our own.
“As always, the interests of our own residents and those of Sanctuary will remain our top priority.”
Commenting on her decision to step down as chief executive of JJH, Ms Castle said: “I have built a hugely positive relationship with Craig and his colleagues over the last nine months and firmly believe the merger will benefit both organisations. It has been an absolute honour and a privilege to be JJH’s leader and I know that our residents and our colleagues are in great hands as the two organisations move forward together.”
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