The boards of Optivo and Southern Housing Group have approved proposals to merge and create a new 77,000 home social landlord.
The new organisation, named Southern Housing, has a target date for formal completion of early 2023.
Discussions about a potential merger began in March this year before being subject to due diligence and negotiations.
An engagement programme also followed to give residents, staff, and external partners an opportunity to feed into discussions.
Optivo and Southern Housing Group work alongside each other in many of the same communities, and the merger aims to create an organisation “that’s big but local”.
‘More financially resilient’
Paul Hackett CBE, chief executive designate of Southern Housing, said: “I’m delighted both boards have approved the merger proposals and we now look forward to combining forces next year.
“This merger isn’t about growing into a large national organisation; it’s about doing what we do better in the communities we already work in.
“Residents will be at the heart of our services, and we’ll use our size to influence positive change in the areas where we operate.”
Sir Peter Dixon, chair designate of Southern Housing, said: “We believe in these very challenging economic times, we will be more financially resilient by joining forces.
“This will enable us to continue to develop new homes and meet sustainability commitments.
“Our history stretches back to the early 20th century, but our social purpose of helping those with a housing need remains today.”
Alan Townshend resignation
Having reached the stage where the creation of the new organisation has been agreed, Alan Townshend, CEO of Southern Housing Group, announced that he will be stepping down following the completion of the merger.
Explaining his decision, Alan Townshend said: “I am proud of getting us to the stage where the agreement to merge has been approved by both boards; however, having reached this point, the time is right for me to step aside and let others take the reins of the new organisation.
“I know Paul has a great team alongside him that are committed to delivering on our promise of great local services, and I will be fully involved in guiding the day one integration process over the next few months before moving on.”
Paul Hackett added: “I’m very sorry to see Alan go, but understand his reasons for wanting to move on at this stage.
“We’ve shared a vision of what the new organisation should look like from our very first conversation together, and his drive, knowledge, and leadership will be missed.
“Alan has a wealth of experience, and I’m pleased he’s agreed to remain in post until we merge.”
Changes to the new executive team at Southern Housing are set to be announced shortly.
Optivo is one of the largest housing providers in the UK, with around 45,000 homes across London, the south-east of England, and the Midlands.
Southern Housing manages around 32,000 homes for over 77,000 people in the south of England.
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