CrowdProperty Secures £100 Million Funding Partnership with ColCap

CrowdProperty has entered into a partnership with ColCap Financial UK Ltd valued at £100 million and this will boost its lending potential and the options it offers property developers across the UK.

This deal allows access to a maximum of £100 million over the course of two years and provides finance for various types of development loans like development finance, development completion, development exit, and bridging. The amounts for these loans could be between £200,000 and £5 million.

ColCap Financial UK Ltd is the parent company of buy-to-let mortgage lender Molo and part of the Sydney-headquartered ColCap Financial Group. The partnership brings together ColCap's funding capacity and CrowdProperty's experience in property development lending.

More financing options for developers

The new arrangement is intended to support developers at different stages of their projects. This includes acquiring sites, funding construction, completing developments and managing property sales.

It also expands the range of financing solutions CrowdProperty can offer. The company said the additional funding could provide more flexibility when matching eligible projects with suitable finance products. More competitive rates may also be available on certain products.

Development finish and development exit finance are among the initial priorities. These facilities can help developers approaching the final stages of construction, particularly when they need additional funds to complete work, refinance existing borrowing or move towards property sales.

Steve Deutsch, CEO of CrowdProperty, said the partnership would help the company diversify its funding sources and extend support to SME developers delivering homes across the UK.

Steve Smith, Head of Sales at CrowdProperty, highlighted the financing difficulties faced by housebuilders, particularly around construction costs, project timelines and sales exits.

Matt Kimber, CEO of ColCap Financial UK Ltd and Molo, described the arrangement as an extension of the group's existing UK business. He said the funding would support CrowdProperty's growth and provide capital for smaller housebuilders.

Building support for SME housebuilders

CrowdProperty has supported the delivery of almost 4,000 homes since 2013, working directly with developers and through intermediary channels.

The company said the ColCap arrangement forms part of its longer-term strategy to diversify funding sources and reach more SME developers across England and Wales.

The funding partnership also adds institutional capital to its existing model, which combines institutional funding with retail investment through its proprietary platform.