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Peabody and Family Mosaic to merge into £618m housing mega-co

160523 HB 1511 Peabody Clapham 098
  • 3 Comments

Housing associations Peabody and Family Mosaic are set to merge into a £618 million organisation

According to the AJ’s sister title Construction News, the combined company will have 55,000 homes and a development pipeline of 11,825 homes across London and the South East.

As part of the deal the Family Mosaic name will disappear, leaving the new Peabody with a total asset base of £6 billion.

Family Mosaic chief executive Brendan Sarsfield will lead the group, with Peabody chair Bob Kerslake (below) remaining in his role. Family Mosaic chair Ian Peters will take the role of Peabody vice-chair.

Meanwhile former Peabody chief executive Stephen Howlett has decided to retire after 42 years in the sector, although he will remain in the post until the merger is complete, which is expected next July.

The deal coincides with another major merger between housing associations L&Q and East Thames, which was confirmed yesterday, along with a £2.6 billion refinancing package to help deliver 100,000 homes. The combined organisation owns and manages more than 90,000 homes across the UK worth £22 billion.

It will implement a 10-year financial plan, which will allow for £15 billion gross capital expenditure in building new homes, a £250 million community investment fund and £5 million a year for a new training academy.

Kerslake BenBlossom

Kerslake BenBlossom

  • 3 Comments

Readers' comments (3)

  • Big new corporations for a big job?! Can they deliver 50% affordable? And 100K homes? It would be great.

    Good local architects, and good local bricks and U values. Carbon neutral. London stocks in London please. Or high rise and handsome with steel and glass.

    We built 2 million homes between the 2 World Wars, local lads using the same sub Voysey / Bayco plans. Unfortunately using mostly ribbon development. We've all lived there at some time?

    The futures looking good? Even England batsmen look good today!

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  • MacKenzie Architects

    Nah, these two mergers are a disaster.
    Big corporations can do no innovation and can make no decisions.
    The main intention of almost all mergers and acquisitions in business is to stifle competition, not improve quality.
    There is absolutely no merit in these two mergers. There is no 'synergy', there is no 'lower management cost', there is no increased opportunity, and they will just become lumpen, slow, bureaucratic behemoths, with higher salaries and pensions packages I wonder.

    Small is beautiful, nimble, imaginative, flexible.

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  • Perhaps? If the CEOs are worth their wages they will break it down into regions or types. Like Barratt's used to be, with a good leader at every division. They will be able to command sufficient capital to get the job done, with independent directors to keep an eye on the supply chain, inefficiency etc. Power also has to be devolved to the buyers and tenants.

    The private sector does this well, or the company goes bust.

    We know all this? We shall see.

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