Social Impact

Building An Impact REIT Model To Scale Affordable Housing

A viable financial strategy for Hong Kong housing

Social Ventures Hong Kong (SVhk) aims to redefine and reimagine the urban landscape of Hong Kong through purpose-driven and people-centric innovation. Since its inception more than a decade ago, SVhk has incubated more than 40 impact ventures in the city.

In its efforts to curb the increasingly high prices of the Hong Kong property market, SVhk has been working with a social realty company to lease and rent out affordable housing to underprivileged families.

To ensure the sustainability of affordable housing in the city, SVhk aimed to establish an Impact Real Estate Investment Trust (REIT) as a viable financial instrument to help scale affordable housing operations.

A meaningful project with real breakthroughs – setting up the first social impact fund in Asia as a sustainable financial instrument to fund affordable housing for youths in Hong Kong
Sandy Cheng, Engagement Manager, Oliver Wyman

Oliver Wyman supported SVhk in detailing out the business model and testing the ecosystem’s appetite. This includes multiple co-creation sessions with SVhk to shape the REIT’s structure and roadmap and exploring various financial levers to validate its sustainability. The team also engaged with potential partners to explore impact partnerships.

As a result, Oliver Wyman designed a viable and sustainable Impact REIT model that balances both social benefits and financial returns. SVhk was guided on the structure and portfolio of the REIT, and on a three-phase approach for its launch.

The team also engaged with various professional service vendors to commence partnership conversations. The project kickstarted SVhk’s first-phase launch and supercharged their efforts to invoke positive social change in this space.

Oliver Wyman helped us come up with a clear framework on the path ahead and fill the gaps of tangible and intangible skills that our team lacked. Everything has been great, would love the see the Oliver Wyman team continue the journey with us
Lehui Liang, Head of Purpose Capital, SVhk