The funds were raised from institutional investors in support of rolling out Wayhome, a UK programme enabling individuals to buy homes without mortgages via gradual homeownership. For institutional investors, the fund seeks to offer dependable, above inflation linked yields that can go towards meeting income demands in defined benefit (DB) pension funds.
The raise allows Wayhome to buy homes with those seeking to become homeowners but cannot realise this goal through traditional means. The model enables customers to part-own, part-rent a home, while putting as little as 5% down, renting the remainder. Customers can buy more of the property whenever they want, reducing their rent.
Adrian Jones, Director, infrastructure debt at Allianz Global Investors, said: “Despite the challenges of the last 18 months, we are delighted to announce significant investments by several anchor investors from both public and private DB pension schemes with which we will start purchasing properties with aspiring homeowners. This first close highlights AllianzGI’s strong track record of helping open up new markets for our institutional clients, giving them access to new types of cash-flows that help them match their liabilities.”