An early investor in a potentially $100 million fund setting out to tackle Bay of Plenty housing inequalities says it has "massive potential for change". The Housing Equity Fund has been established with $40m in total provisionally invested from Bay Trust, TECT, Tauranga City Council, Rotorua Trust and the Whakatäne-based Trust Horizon.
The fund has a minimum initial goal of $100m, including borrowing, but it hoped to grow this by producing enough return to attract more investors - including some with "billions of dollars".
Bay Trust impact investment and partnership manager Terri Eggleton said the idea was born from a brainstorm between the trust and the Tauranga Community Housing Trust about how to attract more money into the housing solutions sector.
New Ground Capital managing director Roy Thompson said the two companies saw the fund as a "unique region-wide collaboration of community-minded organisations".
He said it would help organisations "already doing the hard mahi in the housing space".
It did not intend to become a registered community housing provider.
Thompson said the fund was open to investment from individuals or organisations qualifying as wholesale investors. All investors benefited from a fully diversified fund, while being assured at least as much capital as they committed - probably double - would be invested within their area.
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