Tauranga is set to receive a much-needed increase in supply of affordable, healthy, and well-located homes that put social and environmental needs at the forefront thanks to impact investment fund, Purpose Capital, it’s partners, and specialist build-to-rent company New Ground Capital.

Purpose Capital was established in 2020 to create positive social and environmental change while generating a financial return. The Fund has recently announced its first investment into helping tackle the housing affordability crisis with the Bureta Park Build-to-Rent development.

 “The solution to New Zealand’s housing crisis involves more than simply providing more houses,” says Purpose Capital’s Senior Investment Analyst Stuart Pearson.

 “The housing crisis is largely a result of misaligned incentives and short-term profit speculation. As we have seen, this can lead to unaffordable housing, urban sprawl, and car-centric communities comprised of cheaply built homes with high power bills and emissions. This system kicks the can of responsibility onto future residents and generations.

 “The solution lies in taking a long-term view and building communities which residents can and want to live in long-term. This leads to a stable, affordable, and sustainable housing market and is something we are aiming to assist with through investments like this.”


Homes in the development will be centrally located, nearby bus routes and parks, and within walking distance to amenities including schools, a supermarket, pharmacy, and food outlets. In addition, the homes will be Homestar rated to ensure residents are provided a healthy, dry, and warm place to live. The long-term rentals will be professionally managed by New Ground Living, to give residents security of tenure (up to 7 years), high-quality service and well-maintained homes.


“As impact investors, we strive to create positive social and environmental outcomes, and market returns to investors”, commented Bill Murphy, Executive Director of Purpose Capital Limited.  “As we’ve done in this investment, we often build syndicates of impact investors which enables us and our partners to invest in large projects and increase our impact. The Bureta Park Build-to-Rent development is a good example of the way we work and the systemic change we are looking to drive.”


In addition to investment from the Purpose Capital Impact Fund and some of its Limited Partners, the Bay of Plenty’s Community Trust, BayTrust is also investing.  BayTrust has invested as they are committed to bringing different housing investment models to the BOP as part of their mission to create systems change in the housing space.  Construction partners include built-to-rent specialists, New Ground Capital, and experienced construction company, Mike Greer Homes.


It is hoped that site works will begin before the end of this year and this important new housing supply will be completed by the end of 2025.