Assetz Capital and Aros Kapital have announced an expansion of their partnership in the UK lending market.
This is expected to see Assetz Capital deploy more than £200m of Aros Kapital’s funding across various sectors in 2024, “as part of their overall lending volumes.”
Having worked together since 2020, Assetz Capital and Aros Kapital have “supported a range of sectors including UK SME housebuilders, care sector developers / operators and many other SME trading business sectors.”
To date, Assetz Capital has already “lent over £400m through Aros Capital into UK construction and development projects as well as commercial mortgages and bridging.”
With ambitious plans for 2024, the continued partnership “between the two specialist lenders will also see activity continue to ramp up over the coming years.”
Both entities are also seeking to increase the £200m figure.
This follows ten years plus of significant lending activity “for Assetz Capital since its inception. Since 2013, it has established itself as an industry leader, providing over £1.7bn in funding to UK construction and other trading businesses.”
The development funding alone equates “to supporting the construction of 1 in every 12 new homes built by SME housebuilders over many of the recent years.”
Over the next three years, Assetz Capital is gearing up to achieve and then “move substantially on from the upcoming milestone of £2bn in funding.”
With the extension of its partnership with Aros Capital, Assetz Capital now “has active funding partnerships with five key organisations, providing it deep funding lines to continue growing as a business.”
Delivering on its ambitious growth plans, Assetz Capital will “continue delivering its core loan product offering around residential development, refurbishment, development exit, commercial mortgages, bridging and commercial to residential development schemes.”
This will cover the lender’s key sector specialisms “including residential development and conversion schemes, care, purpose-built student accommodation and commercial property investment.”
Stuart Law, CEO and co-founder of Assetz Capital, said:
“We’re proud to continue our successful collaboration with Aros Kapital, which has been instrumental in supporting our mission to provide fairer growth capital for Britain’s SMEs. For more than a decade, we’ve been on an incredible journey to transform the UK’s property development finance and commercial mortgage sectors, offering fast and flexible solutions that cater to the diverse needs of our borrowers.”
As noted in the update:
“As we approach the £2 billion lent milestone, we are confident that our platform will further accelerate the delivery of much-needed funding to the UK’s vital industries and regions, creating jobs, homes, and wealth along the way.”
Andrew Charnley, Managing Director at Assetz Capital, said they are excited to support not only homebuilders but other sectors like care and supported living, which are both underserved.
Gustav Röcklinger, CEO at Aros Kapital, said there is a huge amount of untapped potential in the UK’s SME housebuilder market, and they have “ambitious plans to continue working with Assetz Capital to drive forward lending activity over the coming years.”