Aeon Investments Closed Its First UK CRE CLO Warehouse at $1.02B

Aeon Investments closed its first collateralized loan obligation (CLO) warehouse for real estate investment in the UK for approximately $1.02 billion (£900 million). This will allow the firm to ultimately finance acquisitions through bonds covering loan expenses.

It’s a tricky time for UK real estate, given recent financial and economic turmoil. The Bank of England has raised interest rates to fight inflation that had largely been a product of soaring energy prices. However, budget decisions under new Prime Minister Liz Truss’s government during the last six weeks are likely to drive up inflation at a faster rate. In a speech on Saturday, as the BBC reported, the Bank of England’s governor, Andrew Bailey, warned, “and as things stand today, my best guess is that inflationary pressures will require a stronger response than we perhaps thought in August.”