A community housing group in Queenstown has secured new funding, after an investor pulled out of backing 50 new social housing units.
Queenstown, south island, new zealand looking over Lake Wakatipu with the remarkables in the distance. Photo: 123RF
The Queenstown Lakes Community Housing Trust says they are buying 50 units in a complex of affordable homes being developed at Remarkables Park.
New Ground Capital is building 227 units, and had agreed to sell 50 to the housing trust.
However, the investor backing the trust pulled out of the deal, saying planned changes to overseas investment rules had caused him problems in raising the money.
The trust has now secured replacement funding from Westpac Bank.
The trust's executive, Julie Scott, said there should be different rules for foreign investors if the money is for a social project.
"The legislation should make provisions for clauses to enable ethical investors, if you like, to invest in New Zealand residential. So it could be as simple as if the money was going a registered community housing provider, than that could be the key for the waiver."
She said work on the development starts next week and the 50 units should be ready by September next year.
