Simplicity chief executive Sam Stubbs. Photo / NZ Herald
Simplicity chief executive Sam Stubbs. Photo / NZ Herald
KiwiSaver provider Simplicity says it has committed $20 million to the Aotearoa Pledge - which aims to raise $100m to address New Zealand's housing shortage.
The contribution is the largest to date and takes investment in the Aotearoa Pledge, which was established by impact investment platform Community Finance, to $71m.
Simplicity chief executive Sam Stubbs said KiwiSaver funds have a large-scale, long-term investment structure that is ideally suited to help build more homes on a mass scale for families and those in need.
The Community Finance model enables investment in housing projects through community bonds, which are issued to provide finance to leading community housing providers across New Zealand.
Simplicity's investors will receive a financial return of between 2 and 2.50 per cent per annum from the investment.
Stubbs said KiwiSaver funds and organisations such as NZ Super, ACC, and iwi collectively have more than $150 billion to invest, making them key in the push to build more homes and tackling the housing crisis.
Other companies and investors involved in the Aotearoa Pledge are ANZ Bank, Generate KiwiSaver Scheme and Pathfinder Asset Management, each committing $10m.
Brokers Forsyth Barr, the Lindsay Foundation, Clare Foundation and WEL Energy Trust have contributed a combined $11m.
"The 250 or more homes that will be built using capital from the Aotearoa Pledge will be life-changing for the families who get to buy or rent them," Stubbs said.
Community Finance chief executive James Palmer said the first projects would be announced in the coming weeks.
Last year, Community Finance raised $40m for the Salvation Army community bond to build 118 new homes in Royal Oak, Westgate, and Flat Bush.
