Shareholders and boards of both organisations have now approved plan for non-compliant 5,000-home association to join Guinness
A 5,000-home housing association found non-compliant with a regulatory standard last year is set to join Guinness Partnership.
Shepherds Bush Housing Association has now gained approval from its shareholders to join the 64,000-home group, after the boards of both associations also gave the merger the green light.
In an announcement this morning Guinness said a further update on the exact timing of the merger “will be provided in due course”, but it has previously indicated the deal will complete in the autumn. The merger still requires approval from third parties
Guinness has said previously the SBHG brand will initially be preserved under the partnership, under which SBHG would become a subsidiary.
The move follows the Regulator of Social Housing in June 2022 finding SBHG non-compliant with the governance and financial viability standard.
In June 2022, the RSH published a report identifying weaknesses in SBHG’s risk management and internal control frameworks and business plan reporting.
>>See also: Guinness beats annual completions target as development bounces back
The report concluded it had failed to identify the potential crystallisation of financial risks in sufficient time. It was downgraded to a ‘G3’ score for governance, meaning it is no longer in compliance and needs to improve,
The RSH also identified concerns about fire safety reporting and compliance with the Decent Homes Standards and data quality.
Guinness built 814 homes in 2022/23 and said in the summer it is on track to meet its target of building 5,500 homes between 2018 and 2025. The £540m-turnover association has around 4,000 homes in its development pipeline.
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