The market has an entirely different perspective on this than I do.
They were unable to refinance their debt with Wells Fargo at the 2.0% they were previously paying and have had to refinance at 4.0% with a second tier financial institute. Suggests to me the property book is not high quality and valuations are possibly overstated, otherwise major banks would be clamouring to lend at 200bps above cash rate and a 50% LVR.
More importantly, if they can only borrow at 4.0%, this vehicle is never going to be free cash flow positive.
I believe the only way out of this is a realisation event/
The market has an entirely different perspective on this than I...
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