Home Run Investor Pack

1. Modular House Fund Opportunity

2. New Zealand faces a significant shortage of affordable homes.
The fund manager Home Run is seeking $5m to support affordable homes
for New Zealand families.
Home Run has partnered with modular house company FirstBuild to
provide house and land packages. The houses can be up to 35% more
affordable than the average New Zealand house price and can take half
the time to build*
Minimum investment is $750,000 with the return on investment to be
negotiated.
Fund advances secured over land.
*based on $650k three bedroom house and $1m New Zealand house price and a build time of 12 weeks vs
26 weeks in the industry
Executive Summary

3. Rob Thomas, B Com, Director & Chief Executive Officer
Former 9 year Elected Member on the Auckland Council, Strategy
Dave Grant, Director & Chief Operating Officer
Former CEO of Compass Homes with strong industry specific experience, business
and leadership skills. Led the building of over 500 New Zealand houses.
Mark Holman, Director & Chief Manufacturing Officer
QS & Building Materials, background originating in logging, sawn timber milling (Sumitoma
Corporation), pre-nail factory management and Head of Building materials.
Governance Strength
John Lennie, BBS CA(PP) FCIS Dip Franchise Mgmt FA Director
Chartered Accountant, Financial Adviser
Jeremy Goodwin, LLB, Director
Senior partner at Carter Atmore Law, Auckland
David Whyte, MA (Hons), MMgmt, PGCertMgmt (Governance), CMInstD Director
Extensive global insurance and financial services expertise.
Dan Dobson,BBS, Fund adviser
Over 20 years’ experience in global banking and financial markets.

4. Housing crisis: New Zealand’s 11-year housing crisis has worsened
dramatically since the pandemic (The Guardian, 2021). Average New Zealand
house price exceeds NZD $1million for first time (RNZ 2022).
Economic outlook: Weak consumer confidence and falling house prices
suggest the outlook has become more challenging. The global growth
outlook has weakened as a result of the Ukrainian war and COVID-19
restrictions and is adding to inflation (The Treasury 2022).
Inflation and interest rates: Tight labour markets and supply chain
disruptions drive inflation to decade-highs. Central banks are responding by
raising interest rates (The Treasury 2022).
Housing affordability: Worsening and has plummeted to an all-time low,
with households now needing nearly 12 years to save for a deposit. Average
property across New Zealand was now worth 8.8 times the average household
income. The rapid house price increases have made Auckland housing
unaffordable for a large percentage of the population (Core Logic 2022).
New Zealand’s city of Auckland is ranked in the least affordable housing
market to buy a house in the world (Bloomberg 2021).
Supply: Prices now rise more rapidly because housing supply is slower to
respond to demand (New Zealand Infrastructure Commission 2022).
Residential investment is forecast to experience strong growth over the
coming year as the large pipeline of consents flows through. However, there is
a risk that supply constraints push some activity into subsequent years (The
Treasury 2022).
Challenges

5. The New Zealand Government is releasing
affordable land for house builders.
The house builder FirstBuild has been offered
access to affordable land.
FirstBuild is able to produce high quality, rapid
build, affordable modular homes that exceed
the New Zealand building code standards.
The fund manager Home Run is seeking
NZ$5m to support the building of FirstBuild
homes for New Zealand families.
Opportunity
Family 109 three bedroom house
Priced from NZ $650,000

6. Fund Manager
• Investor relationship
• Funding contract to FirstBuild
• Land security
• Return on investment
Funding Structure
Investor
• Investment into Home Run
• Return on investment
Builder
• Client Sales & Purchase Agreement
• Design, consent and build
• Funding contract from Home Run
• Return on investment
Customer
• Bank lending with 10-20% deposit
• FirstBuild Sales & Purchase agreement
• Settlement on completion
Limited Partner

7. Partnership Model
THE
FUND
Home Run Limited
Partnership
Entity receiving
investor's funds and
advancing to FirstBuild
for funding house and
land packages.
Limited Partners
Investors who invest
NZD750,000 minimum in
partnership (classed as a
"wholesale investors" as per
NZ Financial Markets
Conduct Act 2013) and
receive quarterly interest
payments.
FirstBuild
Receives funding for house
and land packages from
HRLP.
Pays interest to HRLP at 15%
pa and repays advances
when house purchaser
settles on receipt of the Code
of Compliance from Council.
General Partner (Home
Run Limited)
Responsible for the
management and
business of the
partnership.
Provision of funds to FirstBuild
Limited Partnership for short term
financing of land and house packages

8. Funding Mechanism
HOME RUN PARTNERS
LIMITED
general partner
LIMITED PARTNERS
wholesale investors
HOME RUN LIMITED
PARTNERSHIP
limited partnership
FIRSTBUILD LIMITED
modular house builder
HOUSING NEW ZEALAND
BUILD LIMITED
(Crown entity and subsidiary of
Kāinga Ora)
landowner
HOUSE PURCHASER
Capital
Qtrly Interest
Mgmt fee
Lending
advances
Deposit
Settlement
Deposit
20
%
Final
Settlement
10%
Progress
Payment
20%
Progress
Payment
40%
Repmt
+
Intrst
15%
pa
Progress
Payment
10%

9. Funding Example
Example of a family purchasing a FirstBuild home $650,000
Timeframe 9 months
Lending
Land + Build
Consent
Design
20% Deposit Settlement
$130k $520k
$200K $200K + interest 15% pa

10. Modular Construction
Step 1 – Design
FirstBuild engages a number of professional services to measure the
site, check the suitability of the soil for pile foundations and plots
your house plan on the site ready for consent.
Step 2 – Consent
FirstBuild works with our Architect and Town Planner to support the
building consent application through to completion.
Step 3 – Foundations
Timber pile foundations are completed on site in preparation for the
modular house delivery.
Step 4 – Manufacture
The homes are built in our quality controlled factory and transported
in different modules to the site.
Step 5 – Assembly
The houses are almost fully completed in the factory with final
assembly and landscaping completed on site.

11. The Offer
Home Run is looking for investment:
• Seeking NZD $5m
• Minimum investment $750k
• Return on investment to be negotiated
The funds will be:
• used to finance the purchase of land for building multiple modular
homes at a time, and
• only advanced once building consent has been issued.
Funding secured over the land and supported by sales and purchase
agreements with customers.

12. Thank you
Disclaimer: Prices and materials are subject to change. Please review the FirstBuild Build Contract for full information about your
house and land package options. Images and photographs in this presentation may depict fixtures, finishes and features either not
supplied by FirstBuild Ltd or not be included in any price stated. For detailed home pricing, please talk to a FirstBuild new homes
consultant.