Generate KiwiSaver makes impact investment to help finance 118 new, warm, dry and secure houses for families without homes.
The Generate KiwiSaver Scheme has become the cornerstone ‘impact investor’ in The Salvation Army Community Bond. The $15m transaction – facilitated by Community Finance – means we are the first KiwiSaver provider to invest into community housing via our investment into the creation of 118 new, warm, dry and secure houses for families without homes.
This investment was only made possible because of our members so – as always – a big thank you for your support. The Community Bond is a fixed interest, 5-year impact investment yielding 2.30% per annum and delivers members a sound investment return and social impact.
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Impact investment refers to investments made into companies, organisations, assets and funds with the intention to generate a positive social or environmental impact alongside a financial return.
This project represents a significant commitment from the Salvation Army to develop new housing on their land holdings in urban centres across the country. National Director of The Salvation Army Social Housing, Greg Foster, says the Army is very grateful for the investment. “The Army is delighted to be partnering with Generate KiwiSaver through The Salvation Army Community Bond. We have a large, new housing construction programme across the country and the only significant barrier is access to construction finance on terms that work.
The investment is a winner for all parties, The Salvation Army will be able to use the investment to build more social housing, and Generate KiwiSaver will be receiving a competitive return for their investment, while knowing that the funds are being used to address urgent social and housing needs in the community. This set of arrangements means more and more families who are currently living in garages or are bunking down with family members are going to get to live in their own warm, dry and safe home, within a thriving community setting. We are thrilled for these families, and it will be life-changing for them.”
Barry Coates, Founder and CEO of Mindful Money, says: “Affordable housing was a major challenge before COVID, and now it is even more urgent. We congratulate Generate KiwiSaver for stepping up to help fund the Salvation Army’s programme. This is an example of investment for good – earning a sound return while making warm and healthy homes available to those who need them.”