How Impact Enterprise Fund is Investing in Build to Rent to Help Ease New Zealand’s Housing Woes
New Zealand’s housing crisis continues to be a pressing issue, with many Kiwis struggling to find affordable, secure housing. One innovative solution gaining traction is the build to rent (BTR) model, which promises to offer long term rental options tailored to the needs of tenants. A significant player in this space is the Impact Enterprise Fund, which focuses on creating positive social and environmental outcomes through strategic investments.
The Build to Rent Model: A Game Changer for Housing
While New Zealand’s build to rent (BTR) market remains in its infancy, a leader in property development believes a significant opportunity exists with the emerging asset class to provide better quality rentals on terms friendly to both tenants and landlords. New Ground Capital managing director Roy Thompson on Friday told attendees of the virtual 2021 Property Conference the challenges to the build to rent sector may be many but build to rent developments could help fix New Zealand’s housing crisis.
The BTR model is designed to provide long term rental housing, managed and owned by institutional investors rather than individual landlords. This approach offers numerous benefits, including enhanced security for tenants, professional property management, and purpose-built rental properties that meet modern living standards. By focusing on long term leases, BTR developments provide stability and certainty for tenants, reducing the stress associated with frequent relocations and unstable housing conditions.
Impact Enterprise Fund's Role in Build to Rent
The Impact Enterprise Fund is at the forefront of investing in BTR projects, recognizing their potential to address the housing shortage while delivering sustainable returns to investors. The fund’s investment strategy aligns with its mission to create positive social impact alongside financial returns. By supporting BTR developments, the Impact Enterprise Fund helps to increase the supply of high-quality rental properties, making housing more accessible and affordable for New Zealanders.
Investing in Sustainable and Affordable Housing
One of the key aspects of the Impact Enterprise Fund’s approach is its commitment to sustainability. The fund invests in projects that incorporate green building practices, energy efficiency, and environmentally friendly materials. This not only reduces the environmental footprint of new housing developments but also ensures lower utility costs for tenants, contributing to overall housing affordability.
“The BTR model, supported by investors like the Impact Enterprise Fund, has the potential to significantly alleviate the housing crisis in New Zealand. By increasing the supply of rental properties, stabilizing rental prices, and offering high-quality living conditions, BTR developments can make a meaningful difference in the lives of many New Zealanders.”
Collaborative Efforts for Greater Impact
The success of BTR projects often relies on collaboration between various stakeholders, including local governments, community organizations, and private investors. The Impact Enterprise Fund actively seeks partnerships with these entities to maximize the impact of its investments. By working together, they can leverage resources, expertise, and influence to create more comprehensive and effective housing solutions.
Case Study: A Successful Build to Rent Project
One notable example of the Impact Enterprise Fund’s investment in BTR is a recent development in Auckland. This project, a collaboration between the fund, a local council, and a construction company, resulted in the creation of 100 affordable rental units. These units are designed to provide safe, comfortable, and energy-efficient homes for families and individuals who might otherwise struggle to find suitable housing in the competitive Auckland market.
The Broader Impact on New Zealand’s Housing Market
The BTR model, supported by investors like the Impact Enterprise Fund, has the potential to significantly alleviate the housing crisis in New Zealand. By increasing the supply of rental properties, stabilizing rental prices, and offering high-quality living conditions, BTR developments can make a meaningful difference in the lives of many New Zealanders. Moreover, the focus on long term, sustainable investments ensures that these benefits will continue to be felt for years to come.
Conclusion
The Impact Enterprise Fund’s investment in build to rent projects represents a promising approach to tackling New Zealand’s housing challenges. By prioritizing social impact and sustainability, the fund not only provides much-needed housing but also sets a standard for responsible and effective investment in the property sector. As more investors and stakeholders recognize the value of the BTR model, New Zealand can look forward to a future with more stable, affordable, and sustainable housing options for all.
Credits This article was inspired by and includes information from The Spinoff.