Network and Sovereign plan merger to create 82,000-home association giant

March 15, 2023 Pragna Chakraborty Business 0

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A merger between Sovereign and Network will establish a massive housing association with 82,000 homes. The board of the two organizations has approved the move and believes it will allow them to construct 25,000 houses over ten years. The duo confirmed this would be 4,000 more than they had initially intended to build separately.

The merger proposal comes as a much-needed aid when the housing association industry’s finances are pressured to invest in current stock due to pandemic delays, regulatory pressure, and decarbonization and building safety expenditures. 

Housing associations have been battling cost inflation and a 7% rent restriction, like the rest of the economy, according to Housing Today.

A detailed view of the plan

The boards of the two organizations have approved the move and believe it will allow them to construct 25,000 houses over ten years. According to the duo, this would be 4,000 more than they had intended to create as independent organizations. According to the arrangement, Network will first become a subsidiary of Sovereign on October 1. In April 2025, they would next consider a complete merging in which Network would cease to exist as a separate organization.

The organization is known as Sovereign Network Group and is among the most prominent housing associations in the UK.

The Company Roles

The head of this enlarged provider is the current chief executive of Sovereign, Mark Washer. In contrast, Helen Evans, the chief executive of Network Homes, will be the deputy chief executive.

Jon Gooding, the current provisional chair of the Network, will take over as deputy chair, and Paul Massara, the current chair of Sovereign, will take over as chair of Sovereign Network.

The aggregate revenue of the two organizations in 2021–2022 was £666 million. The organizations expect their yearly income to reach £830 million in 2024–2025.

 

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