This agreement will see Assetz Capital deliver more than £200m of Aros Kapital’s funding across various markets in the UK this year. This will build on the more than £400m of funding that has already been issued through commercial and bridging loans.
The two lenders have worked together since 2020 and provided finance to the likes of UK SME housebuilders, care sector developers and operators.
Since its launched in 2013, Assetz has provided more than £1.7bn in funding to construction and other trading businesses in the UK. The lender said this finance equated to the construction of one in every 12 new homes built by SME housebuilders over the years.
The lender said it was close to approaching the £2bn funding milestone within the next three years. Due to this partnership with Aros Kapital, Assetz has five active funding partnerships to support its growth.
In 2022, Assetz said it would move away from retail funding to become wholly institutionally funded.
It will continue to operate in the residential development, conversion, care, purpose built student accommodation (PBSA) and commercial sectors.
Supporting key sectors
Stuart Law (pictured), 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 we approach the £2bn 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, added: “With over 10 years track record as a business and an experienced team of property experts located throughout the UK, including Scotland and Northern Ireland, we are excited about supporting not only SME housebuilders but also key sectors such as care, supported living and PBSA, both of which are under-served yet vital to the future of UK PLC. Working closely with our partners, we are ideally placed to play our part in helping our customers take advantage of the opportunities which will present themselves in 2024 and beyond.”
Gustav Röcklinger, CEO at Aros Kapital, said: “Since beginning our partnership in 2020, the impact Assetz Capital has had on the UK’s construction industry is incredible. As a funder, we’ve always been dedicated to supporting small and medium sized businesses, so this vision has always aligned with that of Stuart, Andrew and the rest of the Assetz team.
“Given the huge amount of untapped potential currently in the UK’s SME housebuilder market, we have a clear vision and ambitious plans to continue working with Assetz Capital to drive forward lending activity over the coming years.”