Mar 24 2010, 02:29 PM
QUOTE(cherroy @ Mar 24 2010, 02:00 PM)
Company and individual is different. Company cannot secure individual housing loan like 25 years. Bank don't do it.
A lot of borrowing are under 5 years under commercial paper, term loan and various type of credit.
It is already considered long tenure if company can secure borrowing more than 5 years period.
As I mentioned before, refinancing availability is very important for reit with gearing.
In 2008, we saw a lot of reit under pressure being sold down and some even went under due to inability to get refinancing on matured borrowing, which eventually force them to liquidate their properties, or fire-sale.
Most reit borrowing cost are around 4-5% as far as I came across.
the risks probably is managing the cash flow ,,,,,,,,,and based on 4-5% cost.... will it burden their financial....A lot of borrowing are under 5 years under commercial paper, term loan and various type of credit.
It is already considered long tenure if company can secure borrowing more than 5 years period.
As I mentioned before, refinancing availability is very important for reit with gearing.
In 2008, we saw a lot of reit under pressure being sold down and some even went under due to inability to get refinancing on matured borrowing, which eventually force them to liquidate their properties, or fire-sale.
Most reit borrowing cost are around 4-5% as far as I came across.
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