Aeon Investments and LND Capital have extended their £450 mln €540 mln) funding agreement to originate commercial real estate loans in the UK.
The parties also welcome the participation of one of the UK’s leading banking groups in the funding agreement, which will further support the commitment to the underserved real estate market.
The agreement will provide small and midcap commercial real estate borrowers with tailored and reliable funding solutions of between £2 mln and £30 mln, across all major sectors.
Oumar Diallo, Chief Executive Officer, Aeon Investments said: 'This agreement further demonstrates our belief in the commercial real estate sector, despite prevailing headwinds due to rising rates, surging inflation, and uncertain outlook. We firmly believe that rigorous asset selection and loans with prudent LTVs and conservative debt coverage ratios will ensure CRE debt remains an asset class with sound risk/reward ratios.'
He added: 'The extension of our agreement with LND is an exciting development for our CRE Investment Programme. There is a growing appetite from institutional investors to increase their exposure to this market.'
Nicolas Vocos, Chief Executive Officer, LND Capital said: 'We are excited to continue our partnership with Aeon, and to welcome a major British banking group to our commercial real estate lending platform. We are pleased to secure this funding line, which demonstrates our commitment to providing much-needed finance to the underserved mid-market in the UK commercial real estate sector.'
This is the latest development in Aeon’s commercial real estate investment programme, as part of its wider mid-market CRE strategy. The programme intends to build portfolios of commercial real estate loans in the UK in order to meet the increasing interest from institutional investors in investment vehicles focused on commercial real estate.
