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Assetz Capital reaches £200m funding agreement with Aeon Investments

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  • 15/08/2022
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Specialist SME finance platform Assetz Capital has secured £200m in funding from Aeon Investments to fuel its growth.

The agreement will see Aeon Investments inject the £200m investment in to Assetz Capital, which allows the firm to provide commercial mortgages of up to £10m on “commercial investment properties”.

Assetz Capital said the investment would allow it to diversify its commercial mortgage lending and grow its capacity to lend on a wider range of properties used by UK SMEs.

The lender said the funding came at a “critical time” for SMEs as they were being disproportionately impacted by rising material costs, inflation, wages and shortage of skilled staff.

Assetz Capital added that banks were also “visibly pulling back funding for SMEs” and both firms had an “ambition to meet this need and support viable SMEs through specialist financing solutions”.

The lender has loaned £1.5bn of retail and institutional funds to UK SMEs so far and reached an agreement with Aros Kapital earlier this year to invest £750m in the business.

Aeon said the agreement would allow it grow its commercial real estate portfolio in the UK and it had signed similar agreements with two other lenders.

Stuart Law (pictured), CEO of the Assetz Capital, said: “We’re thrilled to start a new relationship with a like-minded company equally committed to supporting the SME sector. 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 loan to values (LTV) 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.”

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