Octavia and Abri merger step closer after shareholders’ approval

The shareholders of Octavia Housing have approved a rule change to enable the housing association to merge with Abri Group.

Octavia, which manages 5,000 homes and is currently non-compliant with a regulatory standard, plans to join 50,000-home Abri Group as a subsidiary next month.

Both boards have agreed to the move and the green light from shareholders means Octavia can join Abri once legal formalities have completed.

Octavia is currently non-compliant with the Regulator of Social Housing (RSH)’s governance and financial viability standard because of its poor financial planning and ‘unrealistic budgets’.

As part of its recovery plan agreed with RSH to improve its governance and strengthen its finances, it hired Savills to carry out a selection process for a potential merger partner and 50,000-home Abri was chosen. In July it was also awarded a ‘C3’ grading against the new consumer standards, meaning there are “serious failings” and significant improvement is needed.

The boards of both organisations believe that joining together would create “a better, more resilient organisation with the necessary resources to invest fully in homes and provide a high standard of services to residents.”