Bevan Brittan advises major housing associations on merger

Law firm Bevan Brittan has advised Peabody and Catalyst on a merger which will create one of the biggest housing association groups in England and Wales.

A 20-strong multi-disciplinary provided advice across a range of legal issues over a nine-month period after being instructed in June last year.

The merger will create a new combined organisation from 1 April 2022 which will be responsible for 104,000 homes and provide housing for around 220,000 residents across London, Kent, Sussex and the Home Counties.

Partner Sarah Greenhalgh, who led the Bevan Brittan team, said the deal would enable both organisations to join together and deliver their vision of having more locally-based teams to ensure close connections with residents.

Community investment by the new combined organisation, which will see Catalyst initially become a subsidiary of the Peabody Group, is also expected to increase to £11m.

Greenhalgh said: “This has been a real team effort to ensure both organisations were able to complete this exciting merger. Both Peabody and Catalyst have similar opportunities and challenges and this will enable the new organisations to move forward stronger together.

“Both have a commitment to being more closely connected with their local communities as well as investing for the future both in terms of modernising their estate, new homes and in meeting their combined net zero ambitions.

Ian McDermott, Chief Executive of Peabody said: "Our customers will be front and centre of our new organisation. Our increased scale will allow us to invest more in services, homes, technology and our people. We want to transform our services for the better, working with customers to create and design services that help them get things done easily and quickly. We'll be focused on getting the basics right, including delivering an effective repairs service, and also fostering a people-first culture throughout the organisation.”

Bevan Brittan’s Head of Housing, Louise Leaver, who worked alongside Greenhalgh on the deal, added: “Bevan Brittan are delighted to have been able to support Peabody and Catalyst in bringing this deal to fruition. The project team excellently led by Sarah, brought together skills from right across our housing practice and we’ll continue working with both parties to advise them on the post-merger integration.”

HR and Employment Partner Sarah Lamont and Pensions Partner Nigel Bolton were also part of the team advising on the merger.