ONE of London’s largest developer housing associations is in talks to take over a Greater Manchester provider; a deal it has described as opening a gateway to the North West.
L&Q and Trafford Housing Trust (THT) announced today that they are holding discussions over the proposed acquisition.
If it goes ahead then the 9,000-home THT would become a wholly owned subsidiary of L&Q, which owns more than 90,000 homes, mostly in London and the South East. However, the organisation has ambitions to expand further afield across the UK, and the THT deal represents a part of those expansion plans.
Both parties anticipate the deal will be completed in June 2019, subject to due diligence, consultation with tenants and other stakeholders, and the development of a five-year business plan.
THT and L&Q already have a close working relationship courtesy of a joint venture partnership that has seen 679 housing starts with a further 1,493 in the pipeline since it was launched in April 2017.
It is claimed that L&Q’s acquisition of THT will unlock £4 billion of investment in the North West and lead to the creation of 20,000 new homes over the next 10 years. What’s more, it is claimed half of these homes will be “affordable”.
“L&Q has an ambitious plan to build 100,000 quality new homes over the next 10 years to tackle the national housing crisis. We see THT as a gateway to the North West, an area of outstanding growth that needs more high quality, affordable homes,” said David Montague, L&Q’s group chief executive.
“We are excited by the opportunity to invest in the North West with a partner that shares our social purpose, values and ambition, has excellent local knowledge and a strong reputation for innovation and delivery.”
Larry Gold, THT’s acting chief executive, added: “This is a unique creation that will be built on true partnership and the strength of our vision, and the people who will deliver it. As part of L&Q, we’ll create significant social impact in the North West at scale and pace and strive to find solutions to the national housing crisis. We will deliver an extensive programme of new development and regeneration projects, as well as improving homes and services for our existing customers.”