The Newcastle-based registered social landlord has been out of the market for 10 years. But now it has bid £5m more than the minimum asking price of £22m for the Cumbrian council's 4100 homes. It has also promised to invest another £37m over five years and £1m for community regeneration.
However, it faces competition from local Cumbrian-based Impact Housing Association. Impact's bid is just more than £22m.
Copeland decided on transfer after discovering it would have just half the £50m-plus needed to bring its housing up to the decent homes standard. It put in an in-house bid to set up a housing association but this was dismissed after consultants rated it the least attractive of six offers.
Bids from B&N Housing, Harvest and Sanctuary were also ruled out.
Home Group plans to borrow £45m to cover the asking price and improvements.
A spokesperson said: "The price we've offered is good value to us and to Copeland.
"We will take a loss in the early years but there will be huge long-term benefits."
Home Group proposes setting up a subsidiary to run not only Copeland's stock but also the 2000 homes it already owns in the area. If it does so, the subsidiary would be the first of its kind.
Impact chief executive Mike Muir said: "West Cumbria has some of the most deprived communities in the country. All the money we borrow would be reinvested locally, with strong regeneration and employment initiatives."
The two organisations are to make presentations before a final decision next week.
Source
Housing Today
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