SAN FRANCISCO — November 12, 2019 — Unison, North America’s leading residential real estate equity partner, announced that it is now offering the world's first Shariah-compliant home co-investment vehicle for institutional investors.
Unison has revolutionized the home financing industry by investing in the equity portion of owner-occupied homes. This has enabled institutional investors to efficiently access a diversified housing portfolio and gain exposure to the largest asset class in the world. At the same time, homeowners are able to gain access to liquidity and financing without increasing their indebtedness.
“Unison has transformed the housing industry by introducing a financing option which doesn’t increase debt, doesn’t require interest or monthly payments, and reduces overall risk to homeowners and to society,” said Thomas Sponholtz, CEO of Unison. “Unison’s investment strategy is inherently aligned with Islamic Finance, and we are excited to be able to announce that this alignment has been made official through this certification.”
Unison investments uniquely share in the gain or loss in home prices, rather than charging interest on the homeowner. Like the tenets of Islamic Finance, Unison’s investment philosophy has also been based in partnership and profit sharing. These features make Unison a unique form of investment which corresponds with the values of Shariah compliant and socially responsible investing.
“Residential real estate is the largest asset class in the world, and a powerful inflation hedge. Yet, broad exposure to the asset class has been cost prohibitive for investors, until now,” Sponholtz said. “Institutional investors and investors seeking ethical and Shariah-compliant investments can now gain efficient access to this asset class.”
Unison’s residential real estate investment program was Shariah-certified by the Islamic Finance Advisory Board, a non-profit, self-regulatory, voluntary body engaged in the promotion of Islamic Finance in Canada.
Unison’s mission is to deliver a safer, more efficient, and rational allocation of housing exposure for society. It has pioneered a revolutionary innovation in home financing: offering equity financing for residential real estate to homeowners and homebuyers through its vertically integrated home co-investment platform. This enables institutional investors to diversify their portfolios with new exposure to a foundational asset class while also making a positive impact on some of the world’s largest socio-economic issues such as housing affordability, household debt, and retirement security. Unison is the dominant player in the home co-investment industry, having originated 85% of all co-investments in US homes. It has already helped almost 7,000 homeowners across 1,500+ cities in 30 states.
Unison Investment Management offers investors scalable, efficient and diversified direct access to residential real estate equity via its open ended REIT.