CrowdProperty, the specialist lender to SME housebuilders, has agreed a forward flow partnership with ColCap Financial UK, parent company of buy-to-let mortgage lender Molo.
ColCap Financial UK will provide up to £100m of funding over an initial two-year term enabling CrowdProperty to originate development finance, development exit, development finish and bridging loans from £200,000 to £5m.
Steve Deutsch, CEO of CrowdProperty, said: “Our partnership with ColCap Financial UK represents an important step forward for CrowdProperty as we continue to strengthen and diversify our funding capacity. By combining our specialist property development expertise and established origination capabilities with the funding strength of ColCap Financial UK, we can provide greater support to SME housebuilders delivering much-needed homes across the United Kingdom.”
Steve Smith, head of sales at CrowdProperty, added: “Housebuilders continue to face challenges around build costs, project timescales and sales exits, making access to appropriate funding particularly important. This partnership gives us additional capacity to support housebuilders at different stages of their projects, including those looking to refinance existing facilities or secure funding to complete developments and bring properties to market.”
Matt Kimber, ColCap Financial UK and Molo CEO, said: “SME housebuilders are vital to delivering the homes the UK needs and this partnership is a natural extension of our UK business alongside the buy-to-let lending provided by Molo. CrowdProperty is an established specialist with a strong record, and we are pleased to provide long-term funding to support its growth.”
Ravi Chauhan, founder and managing director, Laeceum, which acted for CrowdProperty on the transaction, added: “It was a pleasure acting for Steve Deutsch and the CrowdProperty team on this partnership, from the very first conversation to the final signature. It is a transaction that will put real capital behind UK housebuilding, and we are glad to have helped CrowdProperty deliver it in partnership with Matt Kimber and the ColCap Financial UK team.”
