Housing associations to merge
Published by Max Salsbury for 24dash.com in Housing
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Two Worcestershire-based housing associations are to merge.
The boards of Festival Housing and Worcester Community Housing (WCH) have agreed in principle to come together to create a regional group with a combined turnover of £75 million and a stock of almost 14,000 properties.
It is hoped the move will generate over £30m in cost savings over 10 years, which will be invested in building more affordable new homes and in improving customer and community services.
The proposal will now go to consultation with customers and other stakeholders. Should the Homes and Communities Agency (HCA) give its blessing, the merger should go ahead in April 2014.
Guy Weston, Festival chief executive, said: "The merger of two already high performing and financially-strong housing associations will create a new housing group with significant regional and national influence and the strength and stability to maintain and develop essential local services.
“It will build on both organisations’ excellent reputations and track records, combine resources to enhance the quality of service to customers, create a new business better equipped to meet a wider range of community housing needs and more able to respond effectively to the constantly changing and challenging business environment.”
Stewart Mountfield, chief executive at WCH, said: "This is a really exciting opportunity for everyone involved. Both organisations have strong similarity in terms of values, vision and ambition and are committed to the creation of a stronger, customer-centred social business.”
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