Aeon and LND up funding arrangement to £450m

Aeon Investments and LND Capital have extended their £450m funding agreement to originate commercial real estate loans in the UK. The agreement will provide small and midcap commercial real estate borrowers with loans of between £2m and £30m, across all major sectors. Aeon chief executive Oumar Diallo 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.” The new facility is the  latest development in Aeon’s commercial real estate investment programme. 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.