Over the next three years, the investment company will inject an initial £200m into SME loans arranged by Assetz Capital, enabling the lender to provide mortgages of up to £10m on commercial investment properties.
The new funding will allow Assetz Capital to further diversify its commercial mortgage lending and expand its capacity to lend across a broad range of commercial properties used by UK SMEs.
“We’re thrilled to start a new relationship with a like-minded company equally committed to supporting the SME sector,” said Stuart Law, CEO at Assetz Capital.
“The need for SME funding has never been more apparent, as an increasing number of traditional lenders aren’t offering financing solutions to SMEs. Together, through innovative and alternative financing, we can enable UK businesses to grow and scale up.”
Oumar Diallo, CEO at Aeon Investments, added: “Our agreement with Assetz Capital is the latest example of our commitment to the commercial real estate sector. If 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.”