Finance and investment companies join forces in community housing plan

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Housing investment platform Positive Capital, investment house Alvarium and supplier KiwiSaver Pathfinder are partners with Positive Property, which will put $ 100 million in community housing projects, with the balance being raised by housing providers usually through debt. Suppliers, who are backed by long-term government funding, would have the option of buying back the 50% of Positive Property once they have paid off their debt. Positive Capital CEO James Palmer said the mix of value and debt was innovative for this country and would support the breakthrough investment, which planned to create financial returns while achieving social results.

“Investors receive market returns on their equity investments, backed by long-term government funding, with the homes jointly owned and managed by community housing providers. It truly is a win-win impact investment.

“This uniquely enables the construction of new homes on a large scale while increasing the asset base of charities committed to providing affordable housing for future generations.”

He said financial concerns can expect a return of 2-4% per annum and that with $ 248 billion in New Zealand mutual funds, there is room for growth.

“We are involved in similar impact investing funds in the UK and have seen first-hand the positive difference these impact investments make in people’s lives while providing solid returns for our investors. “

Andrew Williams, co-chair of the Alvarium group, said outside experience has shown that these funding arrangements work at all levels.

Palmer said the intention was to find builders and suppliers of materials and crafts, who would be involved in such projects and help by reducing their margins.

Summary of the news:

  • Finance and investment companies join forces in community housing plan
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