Frequently Asked Questions

  • The Fund takes in capital from both debt and equity investors alike, and invests both debt and equity in new housing projects.

  • The Fund focuses on the housing needs of people in the Bay of Plenty region by seeking to create long- term solutions to housing needs that are not currently being adequately met across six pillars of inclusive housing:

    1. Affordable Housing for Key Workers

    2. Supported Accommodation

    3. Senior Housing

    4. Papakainga

    5. Crisis Accommodation

    6. Public Housing

    Investments must accordingly reflect the above key focus areas. The Fund does not compete directly with either private housing developers or public housing providers, but fills gaps in the housing continuum not being filled by the open market or government.

  • The Fund makes investments across an impact/financial return spectrum, where some are higher impact, lower financial return, and others are lower impact, higher financial return.

    The total return to the Fund is made up of development margins on new developments, net rental income, interest income on loans, and capital movement on the Fund's housing assets.

    The Fund targets an average return across all investments of CPI + 4% p.a. (pre-tax after fees) over rolling 10-year periods.

    Investors’ individual post tax returns will be dependent on their taxation status.

  • The impact objectives of the Fund are to:

    • Create more housing supply of typologies/tenures being under-delivered by the market or government

    • Create more affordable housing including retained affordable

    • House more people who are not able to afford quality housing in the BOP region

    • Improve the well-being of the underserved in the BOP region

    • Grow the impact of the Fund to attract additional capital from investors with a desire to positively affect the lives of disadvantaged, but highly aspirational, communities.

  • The Fund addresses specific needs across communities, rohe and geographic regions around the wider Bay of Plenty region, as identified by Founding Shareholders and their representative communities.

    Capital is specifically allocated to housing in the eastern Bay of Plenty including Whakatāne, Ōpōtiki and Kawerau, southern Bay of Plenty including Rotorua and Taupō, and western Bay of Plenty including Tauranga.

  • The investment manager of the Fund is New Ground Capital.

  • The Fund is open to investors who qualify as "wholesale investors", with a minimum commitment of NZ$500,000.

    For the definition of "wholesale investor", please refer to the Financial Markets Authority website.

  • The Fund is open ended, allowing for additional equity capital raises in the future.

    Investors are encouraged to adopt a medium to long term investment horizon (5-10 years), given the largely illiquid nature of the housing assets being invested into.

  • Whilst the Fund will hold a level of liquidity to enable certain redemptions of units, this will be subject to the discretion of managers based on overall levels of capitalisation.

    The Manager will use its best endeavours to fulfil investor redemption requests in a timely manner.