You are viewing 1 of your 1 free articles
Sanctuary eyes new merger with Northern landlord
Sanctuary has revealed it is in the early stages of another tie-up – this time with a Northern landlord.
The 116,000-home association is in partnership discussions with Johnnie Johnson Housing (JJH), a 5,000-home landlord with properties across the North West, North East, Yorkshire and Derbyshire.
The partnership discussions are in their early stages and both landlords are in the process of completing detailed due diligence. Any agreement to proceed will be subject to the approval of both their boards.
Sanctuary completed its rescue of troubled housing association Swan just over four months ago.
At the time, the landlord said that Essex-based Swan will continue to operate as a standalone operation as “future integration plans are discussed”.
READ MORE
Commenting on the new merger plans, Craig Moule, group chief executive at Sanctuary, said: “Our customers are at the heart of all we do, and the interests of both Sanctuary and JJH residents will be at the forefront of our decision-making as we conduct due diligence and continue our discussions.
“As a national not-for-profit provider of affordable housing and care, Sanctuary has a unique role to play in ensuring the continued provision of these critical services to society.”
Yvonne Castle, chief executive of JJH, said: “We always look to do best – what matters most – for our residents. We believe joining Sanctuary will allow us to 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 as we progress with these exciting discussions and robust due diligence. It’s a fantastic opportunity for both organisations.”
JJH has a top governance grading of G1 and a compliant financial viability grading of V2 following its last review by the Regulator of Social Housing in December last year.
The V2 grading was a downgrade from the highest rating of V1, with the regulator saying: “JJH is investing significantly in its existing homes, including a programme to improve fire safety. This investment – coupled with the economic uncertainty in relation to inflation, interest rates and rent increases – reduces JJH’s capacity to respond to adverse events.”
In its last financial statements, for the year ending in April 2022, JJH booked a reduced 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”.
Sign up for our development and finance newsletter
Already have an account? Click here to manage your newsletters
Sign up to the Regulation and Governance Conference
A brand new housing sector conference shining a light on changing regulation and best practice governance – from financial and ethical governance, to ensuring a fair and good service for tenants.
Bringing together 250 UK housing governance professionals in one setting for the first time, this event is an unmissable opportunity to kick-start critical discussions around regulatory policy, tenant satisfaction, accountability, transparency and financial risk management.
