Housing investment platform Positive Capital, KiwiSaver provider Pathfinder, and their parent company Alvarium have joined forces to create Positive Property. They’ll be setting up $200m of new public housing through a shared equity programme.
By contributing 90% of each home’s upfront cost, the community housing providers can meet the growing demand at a significantly increased scale. Positive Capital CEO, James Palmer, said the blend of value and debt was innovative for this nation and would support investing to create financial returns while accomplishing social results.
“Investors are receiving returns on their investments, secured by long-term government funding, with homes being jointly owned and managed by Community Housing Providers. It really is a win-win impact investment.”
This is unique as it enables the creation of new homes on a big scale while growing the assets of charities committed to providing affordable housing for future generations.
Palmer anticipates a return of 2%-4% annually, and with $248 billion in New Zealand mutual funds, there is room for growth. Palmer is involved in similar impact investment funds in the UK and has seen first-hand the positive difference these impact investments make in people’s lives while providing a solid return for the investors.
Who Is Positive Property?
James Palmer set up Positive Property earlier in 2021 to work alongside and support the Government’s significant investment in public housing, with the shared goal of providing more affordable homes to those most in need while delivering both market and social returns to investors at scale.
How does the community housing plan work?
The programme enables new homes to be built now while focusing on growing the balance sheets of leading charities in the long term. It involves the community housing provider owning a half share of each property and Positive Property owning the other half from day one. During the term of the programme, the community housing provider pays down its 40 per cent debt and then has a first right to purchase the remaining half share from Positive Property.
The next step is to find builders and suppliers of materials and crafts involved in such projects and help reduce their margins.
What does this mean for KiwiSaver Investors?
For KiwiSaver investors, this means that when you choose Pathfinder as your KiwiSaver provider, you can help achieve social results and grow the asset base of charities. Pathfinder has been managing investments ethically for nearly a decade. This KiwiSaver plan is for Kiwis who care about investing wisely for retirement, as well as their community and the planet.
In addition to committing to invest in Positive Property, Pathfinder is one of the key investors in Community Finance’s Aotearoa Pledge, which has raised $71m investment commitments this year to tackle New Zealand’s housing shortage.
To see if Pathfinder has a fund that aligns with your values, retirement goals and situation, complete National Capital’s Healthcheck. National Capital is a research led, independent KiwiSaver advice providers that is paid for by the KiwiSaver providers and comes at zero cost to KiwiSaver members.
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