56TE Sovereign 43

TIDM56TE

RNS Number : 8458N

Sovereign Housing Capital Plc

02 February 2016

Sovereign Housing Capital plc

2 February 2016

Sovereign and Spectrum Housing Group consider merger

Sovereign and Spectrum Housing Group have today confirmed they are in talks about joining together to form a new 56,000-home organisation. If the merger goes ahead it will create the largest housing provider in the south and south west.

Sovereign and Spectrum Housing Group have been considering the move since last year following discussions about stock swaps as part of Sovereign's stock rationalisation plans.

During these discussions, it became clear that they shared more than a similar geography and there could be wider benefits to both organisations and their residents in merging.

Both housing associations agreed it made even more sense to explore the benefits a merger would bring, given the increasingly challenging policy landscape.

"While we're strong and successful individual organisations, we believe that together we can be even stronger," said Ann Santry, Sovereign's Chief Executive.

"As well as a similar geography, we also share similar values and a strong commitment to helping people achieve their housing aspirations. By joining together, we'll be able to take advantage of economies of scale; becoming more efficient and resilient so we can continue to meet our long-term commitments to residents and communities."

Richard Hill, Chief Executive of Spectrum Housing Group, added: "We are both committed to building more new homes to help tackle the housing crisis.

"Our organisations have strong development track records for value for money, quality and innovation. This partnership would allow us to use our shared strength and efficiency to meet the range of housing needs in the south and south west and to deliver even more new homes."

Discussions will continue and if both Boards approve, the merger will go ahead by the end of the year.

Notes

-- Sovereign refers to Sovereign Housing Association which comprises of a Group of companies a member of which is Sovereign Housing Capital plc which is a special purpose vehicle established for the purpose of incurring indebtedness and lending the proceeds thereof to members of the Group.

-- Sovereign Housing Association is one of the largest housing associations in the south and south west of England, owning and managing more than 38,000 homes. It offers a wide range of affordable housing options, as well as now adding private market rent and outright sale to its portfolio.

-- Sovereign Housing Association is charitable and includes the non-charitable Sovereign Living Limited, one of the south's leading affordable home ownership providers.

-- Spectrum Housing Group owns and manages around 18,000 homes across the south and south west of England. It also maintains a further 45,000 homes through its maintenance company, Spectrum Property Care.

-- Spectrum provides new homes for sale and shared ownership through Spectrum Premier Homes as well as keyworker accommodation. Spectrum Housing Group is a non-profit organisation.

ENDS

For further questions or enquiries on this announcement, please contact:

Shane Egan

Interim Head of Governance

Shane.egan@sovereign.org.uk

Mob: 078 252 97 261

This information is provided by RNS

The company news service from the London Stock Exchange

END

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February 02, 2016 10:38 ET (15:38 GMT)

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