On 12 September 2023, the Impact Investing Network (IIN) hosted a Housing Symposium with around 100 attendees from trusts, foundations, iwi, government, impact funds, investment managers and sector bodies; to catalyse impact investments into housing.
"No single investor, nor market player, can solve the affordable housing shortage.
We're committed to facilitating forums, like the Housing Symposium, to catalyse investor partnerships that contribute to the affordable housing solution"
- Alastair Rhodes, Impact Investing Network Chair
The Why
"Owning your own home is a dream. When you have a dream, organisations like Habitat for Humanity make it possible" - Andrew Falele, Speaker
Housing is more than the materials used to construct. A healthy home provides safety and warmth, and social and cultural benefits for families and communities. However, Aotearoa is facing a major shortage of affordable housing, particularly for lower income families.
The private market and government alone cannot fill the housing gap. The major shortage requires a corresponding collective and urgent effort from investors and providers to catalyse the large-scale housing solutions.
Session highlights
Paul Gilberd (Community Housing Aotearoa) | Roy Thompson (New Ground Capital) |
Terri Eggleton (BayTrust) | Facilitator: Katie Beith (Forsyth Barr, IIN)
"We all have a choice with housing, we can be part of the solution not the problem".
"Housing is a good investment. It's easy to get over the line with decision-makers. And the impact benefits have been well-researched".
Co-investment is critical. For example the Bay of Plenty Housing Equity Fund is close to its target of mobilising $100m from investors, with an initial investment from BayTrust.
If your organisation's SIPO (Statements of Investment Policy and Objectives) restricts investments into housing, then change your SIPO.
Outsource skills to Investment Managers experienced in housing - see Investment Solutions section.
Given the large scale of the shortage it'll take a range of housing tools and products to contribute to the housing solution, including both debt and equity options.
Courtesy: Community Housing Aotearoa
Māori Housing: Whānau-led housing solutions
Ali Hamlin-Paenga (Te Matapihi) | Mike Hinton and Meyer Peteli (He Herenga Kura) |
Dion Maaka (Toi Foundation) | Emma Emmonds (Te Pae Roa) | Facilitator: Jodi Hayward (Te Pae Roa, IIN)
What does whānau-led housing mean?
To develop the relationship with Māori - "Come sit down with us, do you share the same values?"
"Be courageous, break the cycle"
Impact means whānau is heard, involved and represented. By Māori for Māori.
Housing to Māori is "bigger than four walls". Housing benefits communities, wellbeing, health, education, the environment, and is intergenerational.
We are serving our mokopuna (children/grandchildren).
We need to redefine value of housing, which is both return on investment and return on wellbeing.
We are landless not homeless.
Mauri ora is the creator of innovation.
How can housing be part of your portfolio, via Fund Managers and Kiwisavers
John Berry (Pathfinder) | James Palmer (Community Finance)
Community Finance (and Positive Capital), Pathfinder and Alvarium, partnered to build $200 million of new public housing through a shared equity programme.
Housing is a proven concept. Now is the pivotal time to make investments into housing.
When involving Kiwisavers, not every dollar is equal. Equity is harder than debt.
Community Housing Providers can meet the growing demand for housing at a significantly increased scale with investment models used by Community Finance and Pathfinder.
A critical factor for the success of a housing investment, is for investors to get an advisory team and fund managers with experience and expertise in impact investing and housing.
Investment into housing within Aotearoa instead of offshore, brings financial and impact benefits to our local communities.
Impact Investment Housing Solutions
Derek Handley (Aera) | Tim Symons (Brightlight) | James Palmer (Community Finance) |
Conrad LaPointe (Habitat for Humanity) | Roy Thompson (New Ground Capital) |
Nigel Spratt (YouOwn) | Julie Scott (Queenstown Lakes Community Housing Trust).
The speakers above presented the innovative investment models they're applying to housing solutions, including Buy to Rent, Housing Equity Fund, Shared Equity, Community Housing Providers, whānau-led housing, Progressive Home Ownership, Shared Ownership, Community Infrastructure, Rent to Own.
Steven Moe from ParryField Lawyers has since shared their Legal Guide for Community Housing with us! You can access the guide here.
More detail of investment solutions can be found in this booklet (click the booklet):
We are grateful for the expertise, energy and experiences of all speakers and participants for contributing to a successful event and housing investment solutions in Aotearoa.
About the event organisers:
Impact Investing Network: peak body that connects, educates and advocates to grow the impact investing sector and transition to a sustainable Aotearoa New Zealand.
BayTrust: Our purpose is to accelerate bold meaningful change, assisting Bay of Plenty communities and the environment to flourish.
Forsyth Barr: A world-class team of advisers, delivering innovative financial services and investment opportunities, supported by award-winning local and global research.
New Ground Capital: An investment manager specialising in the development and management of investments that generate commercial financial returns alongside social and environmental impact.
Philanthropy NZ: The hub of philanthropy in New Zealand. PNZ provide thoughtful leadership and practical help for anyone with an interest in giving to make the world a better place.
Wellington Community Fund: An independent funder – giving out over $2 million dollars in grants, every year, in the Wellington region.
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