Leading up to this, Arklet had undertaken a strategic options review which resulted in an invitation to housing organisations to explore their interest in entering into a partnership arrangement. The selection process culminated in Arklet choosing Hanover as its preferred potential partner.

Importantly, the process highlighted benefits for all residents along with a strong synergy of ideas and a shared vision for the future between the two organisations.

Arklet and Hanover will now begin the formal process of negotiation and due diligence with all partnership options being fully considered in detail before agreement is reached. Both are confident that progressing these discussions will be a positive step.

Residents of both organisations will be kept advised and engaged throughout, and their best interests will be firmly placed at the heart of any decision-making.

Mike Martin, chair of Hanover Scotland, said: “I am excited at the prospect of Hanover Scotland and Arklet working in partnership and feel there will be positive benefits for residents and staff of both organisations.

“We are at the very beginning of this process but discussions to date have shown that the organisations share common aspirations and I am confident that together we can improve and grow.

“There is a lot of detailed work and due diligence to be done to ensure any partnership that does emerge is robust and sustainable”

Iain Wallace, chair of Arklet Housing Association, said: “We are delighted that we have now entered formal discussions with Hanover Scotland regarding a possible partnership which will improve the range and value of services for our tenants. We are particularly grateful to the members of our Tenants’ Forum who have participated in the selection process and have represented the feelings of their fellow residents in a highly effective and constructive manner.

“The strategic options review and call for expressions of interest that has got us to this stage has been an invaluable process and we would like to thank everyone who has been involved for their assistance. We now look forward to the discussions with Hanover Scotland and their team to explore what shape a partnership deal might take and believe this will lead to positive outcomes for our residents.”