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25,000 Home Target For New Simplicity Fund

Default KiwiSaver and Investment fund manager Simplicity has launched a new fund focused on residential property sector investments.

Its new Homes and Income Investment Fund aims to provide an alternative to traditional property and fixed income investors, by funding up to 25,000 homes over the long term.

Via its KiwiSaver and Investment funds, Simplicity already invests around 5% of its total funds under management into:

Shares in Simplicity Living, a build-to-rent home developer and operator

First home mortgages (new and existing homes) for qualifying Simplicity members

Community housing bonds and other fixed income investments

Over $340 million has been invested in residential housing-aligned investments across New Zealand to date, with a total of 1,518 rental homes completed, funded or in development through Simplicity Living and community housing providers.

Via its new Homes and Income Investment Fund - a residential property focused fund - Simplicity aims to meaningfully increase the supply of homes across New Zealand while generating competitive risk adjusted returns for investors over the long term.

Simplicity estimates that if the equivalent of 5% of the existing retail deposit base were invested in the Homes and Income Investment Fund, it could help:

Build 10,000 build-to-rent homes via Simplicity Living

Lend 10,000 low-cost first home mortgages for its members

Fund 5,000 homes built by community housing providers

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“Our housing crisis is fundamentally an issue of supply,” said Sam Stubbs, Managing Director of Simplicity. “So increasing the number of homes across New Zealand is a meaningful way to help address our housing crisis.”

“And helping first home buyers with competitive mortgage rates will also make a difference,” he adds.

“We’ve spent the last three years investing some of our KiwiSaver and Investment funds into the residential property sector through Simplicity Living, first home mortgage lending, and community housing bonds,” said Mr. Stubbs. “We’re now ready to scale up and make a big difference.”

“And it’s a market-driven initiative, which we suspect the Government elect will be supportive of,” he said.

The fund will target to maintain 40% in cash and equivalent assets to provide liquidity so investors will have full access to all their money at any time, with no withdrawal fees or penalties.

“This is an opportunity to make money and do good,” Mr Stubbs said.

The fund will be available to investors from 30 October, with a minimum investment of $1,000.

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