Whangārei Affordable Rentals
Soul Capital supported the development of 10 affordable rental homes in Tikipunga, Whangārei, supporting local whānau into healthy and affordable homes and offering them an opportunity to home ownership.
Fund: Te Pae ki te Rangi
Transaction Summary
Fund: Te Pae ki te Rangi
Date Invested: August 2023
Instrument: Equity Investment
IRIS+ Category: Real Estate | Affordable Quality Housing - Affordable Rentals
Why We Invested
Affordable rentals are scarce in Whangārei. At first, we were hesitant to jump into this space: housing requires significant capital relative to our fund size, and the numbers are harder to make work. But the impact logic is hard to argue with. Stable, affordable housing is the one factor in alleviating social disadvantage. From there, everything else builds.
The economic case is direct. Discounted rent means whānau have more capacity to meet essential needs, build financial stability, and take steps toward social and economic mobility. Those effects compound across generations. What made us look closer at this investment was the model around the homes, not just the homes themselves. Partnership with our kaiarahi at Pehiaweri Marae and Habitat for Humanity means whānau living in these properties have cultural guidance and wraparound support alongside a roof. That's a different proposition from a standard rental. Habitat for Humanity's involvement also opens a pathway to home ownership for whānau who are ready to take it.
Catalytic, flexible capital unlocked something the market wasn’t going to deliver on its own.
Measuring What Matters
Problem:
A severe shortage of affordable, high-quality rental housing in Whangārei is pushing low-income whānau into housing stress, instability, and overcrowded or substandard living conditions - undermining their wellbeing, equity, and long-term opportunities.
What:
Improved housing security and affordability for whānau experiencing housing stress in Whangārei. Short term: stable, affordable housing frees up income for essential needs and provides a foundation for better health, education, and financial outcomes.
Long-term: improved social mobility, health outcomes, and intergenerational equity, with a pathway to home ownership through Habitat for Humanity.
Who: Whānau in Tikipunga, Whangārei experiencing housing insecurity, including Māori and low-income households with limited access to affordable rentals.
How Much:
Scale: number of whānau housed.
Depth: material improvement in quality of life and financial relief through affordable rent.
Duration: ongoing access to stable housing for as long as whānau remain in the home, with benefits experienced across generations.
Contribution:
Soul Capital's investment unlocked a housing model that wouldn't have progressed without catalytic, flexible capital. The integration of cultural guidance and wraparound support through Pehiaweri Marae and Habitat for Humanity makes this distinct from typical rental housing and aligned with community-led aspirations.
Impact Risk:
External risk: from policy or market shifts that could affect affordability of the homes.
Impact Measures:
Number of whānau housed. Quality of living from resident feedback.
