Aeon Investments is investing an initial 拢200m (鈧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 拢200m of investment into SME loans arranged by Assetz, enabling the business to provide commercial mortgages of up to 拢10m on commercial investment properties.
Assetz said the partnership enables it further diversify its commercial mortgage lending and 鈥漞xpand its capacity to lend across the broadest range鈥 of commercial properties used by UK SMEs.
Stuart Law, CEO of Assetz Capital, said: 鈥淲e鈥檙e thrilled to start a new relationship with a like-minded company equally committed to supporting the SME sector.
鈥淭he need for SME funding has never been more apparent as an increasing number of traditional lenders aren鈥檛 offering financing solutions to SMEs. Together, through innovative and alternative financing we can enable UK businesses to grow and scale up.鈥
Oumar Diallo, CEO at Aeon Investments, said: 鈥淥ur agreement with Assetz Capital is the latest example of our commitment to the commercial real estate sector.
鈥滻f 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.鈥
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