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."

Conditions that had been driving up interest rates, as in the US and other parts of the world, have now accelerated in the UK, making CRE financing more challenging. That will likely lead to more call for bridge financing as many developers and investors try to wait for rates to stabilize.