Manchester HAs reveal merger plans to create 34,000-home group

In a memo to stakeholders about the tie-up, Great Places said "while this is not a merger proposal born out of necessity, this new partnership will put us in an even stronger position to deliver on our joint objectives, together". 

If the merger completes, Great Places’ chief executive, Matthew Harrison, will step down after nine years in the role and Charlie Norman, chief executive of MSV, will take the top job at the newly formed group. 

Ms Norman said: “In an increasingly challenging environment, there will be meaningful and significant benefits of creating a larger, more resilient organisation. The new organisation will keep a strong local focus and connection to our communities, put customers at the heart of all we do and value the shared heritage and legacy of MSV and Great Places.”

The memo to stakeholders said if the merger goes ahead Great Places would look to spend an extra £4m a year on "improving services for customers, investing in our existing homes to ensure their future sustainability and reducing our carbon footprint". 

The board of the newly formed group would be headed by Tony Davison, group chair of Great Places. Gareth Hall, chair of MSV, will take the role of vice-chair at the new group. 

Mr Davison said: “This is a great opportunity to tackle the challenges facing our sector head-on, to put more money into the communities we serve and to improve services for our customers.”

Alison Dean, currently executive director of people, culture and business improvement at Great Places, will be deputy chief executive of the new group. 

Phil Elvy, Great Places’ director of finance, has been named chief financial officer designate. Helen Rourke, executive director of finance at MSV, is executive finance director designate. 

David Robinson will continue in his role as chair of Cube Homes, Great Places’ commercial subsidiary. 

In its last full year to March 2022, Great Places Housing Group reported a pre-tax surplus of £21.2m on increased revenue of £166m. This was a 61 per cent drop on the previous year’s surplus of £54.8m, which had been boosted by a £39.4m gain on a transfer of engagements. 

In MSV’s last full year it posted a pre-tax surplus of £6.3m, compared with a deficit of £8.5m the year before. Turnover edged up to £49.4m. In January this year, MSV raised £140m through its first private placement. 

Great Places currently has a G1/V1 rating with the regulator, as does MSV. 

Update: at 7.11pm, 12.10.22

A previous version of this story stated incorrectly that MSV would join Great Places as a subsidiary. MSV will join Great Places through a transfer of engagements.