Aeon Investments has closed its first commercial real estate collateralized loan obligation (CLO) warehouse in the UK, backed by three strategic loan agreements totalling £900 mln (€900 mln) as it continues to grow its private credit business.
Loans will be funded through Aeon's balance sheet and a three-year revolving senior warehouse facility provided by Credit Suisse. Aeon expects to issue three CLOs over the next two to three years and will be the biggest of their kind seen in Europe to date, it said.
A collateralized loan obligation is a type of structured credit product increasingly common in the US that, until the issuance by Starz Realty Capital in Q4 2021, had not been used in European commercial real estate since the global financial crisis of 2008. It provides investors with a more liquid alternative to the commercial real estate loan syndication market.
Aeon’s recent agreements with WayPark Capital, a newly launched commercial real estate lending platform, private bank Arbuthnot Latham & Co, and specialist SME finance platform Assetz Capital, expands its commercial real estate investment programme, which launched in Q4 2021.
