Top companies join the $100 million pledge
Investment platform Community Finance has launched The Aotearoa Pledge, which brings together investors with community housing providers to raise $100 million in 2021 to build affordable homes amid the housing crisis.
Community Finance announced that ANZ Bank, Generate KiwiSaver Scheme, Pathfinder Asset Management, investment firm Forsyth Barr, the Lindsay Foundation, Clare Foundation, and Waikato’s WEL Energy Trust have already joined the pledged – with a contribution totalling $51 million.
Community Finance chief executive James Palmer noted New Zealand’s housing crisis and how the private sector could provide affordable homes.
“New Zealand needs more affordable houses. The housing system is broken, and The Aotearoa Pledge is designed to bring capital at scale to finance new affordable homes around the country,” Palmer said.
“Impact investing through Community Finance enables investors to obtain the financial returns they seek while delivering more affordable homes for current and future generations of Kiwis who need it the most.
“Collaboration is essential for solving the housing crisis Aotearoa faces. We need less talk and more action. We hope to see other fund managers, community foundations, and businesses step up this year and join The Aotearoa Pledge to bring transformational change for the community and those in need. He waka eke noa. We are all in this together,” Palmer concluded.
Community Finance will use the capital raised through the community bonds as part of The Aotearoa Pledge to build more affordable homes throughout the North and South Island.
Dean Spicer, the head of sustainable finance at ANZ Bank, said the pledge will play a significant role in mobilising international savings to increase the housing available via community housing providers and deliver improved outcomes for communities.
“Providing access to affordable, liveable, and sustainable housing is an important objective for ANZ and enables other market participants to help foster the market for community housing,” Spicer said.
“This issue will give Community Finance the ability to expand potential funding sources available to community housing providers and allow ANZ the opportunity to consider new residential housing projects, which may be suitable for direct investment or for distribution of bonds, to capital markets investors.”
