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.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Erik Sherman

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.