Synergy and Aster provide a wide range of services to make a positive difference to people’s lives. Together they manage over 26,000 affordable homes across central southern and south west England and build homes for affordable rent and sale.
The two organisations, which jointly employ around 1,800 staff, believe merging would deliver improved quality and value for their tenants and other customers.
The proposal to merge was announced last week. Both organisations will now be discussing the details of the proposal with tenants, customers, staff, local authority partners, the regulatory authorities and other stakeholders.
Both Synergy and Aster have been tackling the recent challenges posed by the public sector funding cuts and the introduction of the Localism Act and Welfare Reform Bill.
The merger of these two robust organisations would provide financial savings of around £8m in the first five years. This would also potentially boost their joint borrowing capacity and increase their options for future funding.
The main objectives from this proposed merger are to ensure that Synergy and Aster have the future resources and funding to continue to provide services to meet tenants’ and customers’ needs; to build more homes; to be a partner of choice for central and local government; and to be an employer of choice.
Commenting on the proposal Synergy Chief Executive, Graeme Stanley, and Aster Group Chief Executive, Bjorn Howard, 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.”
Graeme and Bjorn added: “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.”
Synergy and Aster will spend the next few months developing the proposal with the aim of formally merging in autumn 2012.
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