Wayhome will use the capital raised from institutional investors, such as pension funds, to purchase homes with buyers who are unable to secure a home through traditional means.
The Wayhome model enables customers to part-own, part-rent a property, with a minimum deposit of five per cent. They can buy more of the property, reducing their rent, whenever they choose.
AllianzGI anticipated that the new partnership with Wayhome — named the Home Equity Income Strategy — will “open up a new market for institutional investors that aims to offer reliable, inflation-linked yields that suit the cashflow profiles of defined benefit pension funds, whilst helping more aspiring home owners to get on the property ladder”.
“Our partnership with AllianzGI means that reluctant renters, those who would prefer to own their own home, will soon have a new route to home ownership, without a mortgage,” said Hugh Boyle, chief executive at Wayhome.
“AllianzGI’s involvement enables us to unlock the institutional financing we need to open a path to home ownership to hard-working families, such as those currently paying off somebody else’s mortgage,” Boyle added.
“We have a great track record of helping open up new markets for our institutional clients, giving them access to new types of cashflow that help them match their liabilities. We did it with infrastructure debt and now we plan to do it again through Wayhome’s gradual home ownership model,” said Irshaad Ahmad, head of European Institutional at AllianzGI.
“We continue to see significant institutional investor demand for the type of cashflow matching that this partnership with Wayhome is set to provide. We have been impressed by the concept the Wayhome team have created over the past few years and look forward to helping them bring this innovative new idea to the market,” Ahmad added.