Aeon extends £450m CRE funding agreement with LND Capital
Aeon Investments and LND Capital have agreed to extend their £450m funding agreement to originate commercial real estate (CRE) loans.
A leading UK-based banking group has also joined the funding agreement.
The funding agreement will offer loans of between £2m and £30m to small and midcap commercial real estate borrowers across all major sectors in the UK, in an effort to support the underserved real estate market.
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“This agreement further demonstrates our belief in the commercial real estate sector, despite prevailing headwinds due to rising rates, surging inflation, and uncertain outlook,” said Oumar Diallo, chief executive, Aeon Investments.
“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.
“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.”
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“We are excited to continue our partnership with Aeon, and to welcome a major British banking group to our commercial real estate lending platform,” added Nicolas Vocos, chief executive, LND Capital.
“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.”
Aeon’s commercial real estate investment programme aims 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.
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