July 20, 2024

Chainbow merges block management business with Trinity

You read it here first.  This Property Week article by David Doyle was published on the 27th January.

Chainbow has merged its block management business with Trinity (Estates) Property Management to form Trinity Chainbow – an enlarged block management business servicing around 40,000 home-owners.

At the same time Southam will realign the remaining Chainbow business to focus on premium block management and the private rented sector. He will retain involvement in the Trinity Chainbow business.

Support for institutional investment in the private rented sector has been growing and has been a long-running plank of British Property Federation campaigning.

The BPF believes that investment in the private rented sector is vital to meeting housing demand, especially as it gets ever more difficult for first-time buyers to access affordable mortgages. The focus is around changing legislation in order to encourage institutions, such as pension funds, to see value in investing in the residential asset class.

At the end of last year the government appointed City grandee Sir Adrian Montague to lead a review into barriers to investment.

Southam is hoping to capitalise on increased investment in the private rented sector from institutions and the company is already in talks in relation to five sites for private rented sector accommodation.

“I am putting my company where my mouth and my faith is,” said Southam. “You have got to make that leap from one iceberg to the next iceberg.

“We have got to look after the core business that we are jumping away from (the part of the business that is merging with Trinity) but we have also got to demonstrate our belief that this is where the residential sector is going.”

The Chainbow business will focus on “premium, quality and strategy” and will be based around long-running partnerships with investors and developers.

The premium block management side of the business will focus on “5* and higher” residential property. The company will also provide strategic advice to developers on how to build residential blocks in a way that makes them easy to manage.

Additionally it will provide consultation on LVT (leasehold valuation tribunal) and RTM (right to manage) cases.

Chainbow was founded in 1989 by Roger Southam – turnover for the year ending December 31 2011 was £1.6m and profits were £150,000. Six members of Chainbow’s 35 staff will move to Trinity Chainbow.

Trinity was founded in 2000 and currently manages 35,000 homes across 600 developments.

The financial details of the merger were undisclosed.