Proposed merger will affect 70,000 tenants

Synergy Housing and Aster Group are holding merger talks that would create a 26,000 home social landlord. It is believed by both groups that merging will deliver a much improved service for what would be a combined 70,000 customers across Southern and South West England.

The organisations, who between them employ over 2,000 staff, say they intend to discuss the details of the merger with all tenants, local authority partners and the regulatory authorities along with the stakeholders. The merger of the two social landlords will provide financial savings of around £8m during the first five years. It will also boost their joint borrowing capacity and give them better options for funding.

Both organisations feel the main objectives from the merger will be to make sure they have the future resources and funding to continue for many years while providing a service to meet the tenant’s needs. They also anticipate making savings on such things as landlord insurance and maintenance bills. Synergy and Aster will spend the next six months developing the proposal and if all goes well the merger will happen in autumn 2012.

Synergy Chief Executive, Graeme Stanley, said “Synergy and Aster are very similar organisations and are passionate about the same things, in particular ensuring that tenants and customers are at the heart of our business and delivering services locally. This proposed merger would provide exciting opportunities for both our customers and staff. If we come together we’ll be a major provider of housing, care and support in the Central South and South West. We’ll be able to have more influence and strength to change and improve things for our tenants and other customers.”