Aeon Investments is investing an initial £200m (€236m) in UK commercial mortgage lending via a funding agreement with SME finance platform Assetz Capital.
Over the next three years, London-based credit-focused investment company Aeon is expected to inject an initial £200m of investment into SME loans arranged by Assetz, enabling the business to provide commercial mortgages of up to £10m on commercial investment properties.
Assetz said the partnership enables it further diversify its commercial mortgage lending and ”expand its capacity to lend across the broadest range” of commercial properties used by UK SMEs.
Stuart Law, CEO of Assetz Capital, said: “We’re thrilled to start a new relationship with a like-minded company equally committed to supporting the SME sector.
“The need for SME funding has never been more apparent as an increasing number of traditional lenders aren’t offering financing solutions to SMEs. Together, through innovative and alternative financing we can enable UK businesses to grow and scale up.”
Oumar Diallo, CEO at Aeon Investments, said: “Our agreement with Assetz Capital is the latest example of our commitment to the commercial real estate sector.
”If you adopt a strong focus on risk management and have prudent LTVs and conservative debt coverage, we believe commercial real estate lending is a very attractive asset class, particularly in the current environment with depressed fixed income market and falling equity prices.”
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