Property companies should refinance sooner rather than later to avoid competing with a glut of upcoming loan maturities, according to JC Rathbone Associates.
The warning for firms to “proactively address their refinancing needs early” came from JCRA managing director John Edwards, speaking at the independent risk management advisory’s annual property breakfast.
Edwards said the present refinancing environment was a situation where the old adage “save the pennies and the pounds will take care of themselves” most emphatically did not apply.
“Hanging on to a low loan margin until expiry may save money in the short term but, with restricted loan capital this is likely to prove more expensive in the long term, as the limited active lenders fill their pipeline,” he said.
An estimated £16bn of debt is expected to mature in 2012, with almost £80bn maturing over the next four years.
bridget.oconnell@estatesgazette.com
