DATE OF INVESTMENT | 30 March 2022 |
LOCATION | Tauranga |
SECTOR | Housing |
STAGE/TYPE OF INVESTMENT | Land Development |
IMPACT FOCUS | Affordable Housing |
STATUS | Active |

Profile
Bureta Park Build-to-Rent (BTR) is an 89-townhouse development in the Tauranga suburb of Otūmoetai. The project is being undertaken by New Ground Capital, in partnership with Mike Greer Homes. Our investment to date has consisted of the provision of debt funding to assist with the acquisition, consenting and land development for the project.
Upon completion, 50% of the homes are targeted to be at least Homestar 6 rated, a first for a development of this scale in Tauranga. Centrally located, the project will demonstrate how to build much needed inner-city housing, without contributing to urban sprawl and its negative social and environmental consequences.
The property is adjacent to Countdown Bureta Park and will be comprised of a mix of two and three bed townhouses.
Upon completion of the development, 50% of the homes will be allocated to affordable housing and/or Community Housing Providers. Mike Greer Homes which has a 50% equity stake in the development will selling its share of the 89 homes on the open market.
Impact
Sustainable, secure, affordable housing is one of Purpose Capital Impact Fund’s focus areas. This development increases the housing stock in Tauranga for both renters and first home buyers alike.
Purpose Capital raised a syndicate of impact investors who share the same outcome desires for the community, residents and environment.
Tauranga’s prevalent housing strategy of developing houses at the fringe areas is contributing to urban sprawl, congestion, car-centric communities, pressure on infrastructure, and fragmenting of social connections. This investment provides a first step for Purpose Capital in leading systemic change in the housing space by providing long-term capital and prioritising social and environmental outcomes.
New Ground Capital, our investment partner in this project, shares our impact desires and is dedicated to improving access to affordable housing. In particular, New Ground has a strong focus on the delivery of quality Build to Rent homes.
Homestar ratings indicate an easier to keep warm, healthier, cost-effective, and environmentally friendly home. This development is targeting a rating of at least Homestar 6. As power bills generally contribute to the second largest household outgoing (behind rent/mortgage), reducing the operating costs of housing has a positive effect on household budgets and, therefore, reduces the likelihood of financial hardship.
Transaction Summary
In March 2022 the Fund invested into New Ground Living (Bureta Park) Limited, as part of an impact investment syndicate. This investment supported the acquisition of the underlying land and the consenting phase. The Fund’s impact investment partners are Bay Trust, Fund LP’s and other regional impact investors.

