Expansion of partnership will add further £200m to lending volumes

More than £200m of funding will be available to deploy across various business sectors following the expansion of Manchester-based Assetz Capital’s partnership with Sweden’s Aros Kapital

The two have increased their focus on the UK lending market and the £200m in extra funding will be part of the partners’ 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 more than £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 on from 10 years plus of significant lending activity for Assetz Capital since inception.

Since 2013, it has provided more than £1.7bn in funding to UK construction and other trading businesses. The development funding alone equates to supporting the construction of one 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 said it 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 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, said: “With over 10 years’ track record as a business and an experienced team of property experts located throughout the UK, including Scotland & NI, 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.”