Three-way merger abandoned over ‘unprecedented’ wider economic changes

Norwich-based Flagship is the largest of the three landlords with 32,000 homes. David McQuade, the group’s long-serving chief executive, had been lined up to lead the merged group. 

As of May this year, the tie-up was still awaiting approval from the group’s three boards. 

Kevin Bolt, chief executive of 19,500-home BPHA, was due to step down in May, but had stayed on while the merger talks were live. 

Plans for Futures’ current chief executive, Lindsey Williams, in any newly merged group had not been disclosed. 

The groups’ chairs added today: “Each of the organisations is well placed to continue to serve their customers effectively and now look forward to supporting each other in the normal course of business.” 

The sector has witnessed a number of ups and downs in the M&A space in the past 18 months as landlords look to navigate the challenging environment. 

Last week, Orbit abandoned merger talks with troubled housing association Swan, nine months after they were first announced. Giant landlord Sanctuary has since stepped in with a view to a tie-up with Essex-based Swan. 

Yesterday, two G15 landlords, Southern and Optivo, said they were on track to combine to create a 77,000-home group.

It is Southern’s second attempt at a major merger after a proposed 130,000-home tie-up with Sanctuary last year, which would have created the UK’s largest social landlord, failed to happen.  

In April this year, Catalyst became a subsidiary of fellow G15 landlord Peabody after completing a 104,000-home merger in April. 

And in May last year, PA Housing and Accent Group abandoned plans to create a 43,000-home landlord.