Andrew Perloff’s Panther Securities has seen its swap liabilities fall from £15.3m in December 2021 to just £400,000 at the end of last month.
The firm said it had seen a “material fall” in its swap liability position, dropping from £15.3m, to £3.9m at the end of June and now to just £400,000.
Panther has two financial derivatives which comprise the current swap liability. The first is at a fixed rate of 2.01% on £25m with around nine years to run. The second is at a fixed rate of 5.06% (dropping to 3.4% on 1 September 2023 for the remainder of its term) on £35m with 16 years to run.
The group said the combined liability under the financial derivatives had fluctuated significantly since they were first entered into and it believes that this will continue to be the case until their maturity dates.
However, it expects that given the current market expectation for rising rates, the value of the swaps is benefiting from this market outlook.
The two swap financial instruments also protect Panther from the cost of rising interest rates on its £60m, said the group.
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