No. The minimum term of any debt raised will not extend beyond the five yearly exit mechanic. At the 5-year point, the Latest Valuation is based on the Latest Property Value less any deferred tax and outstanding debt. Future interest rates after the 5 year period would not impact this Latest Valuation and investors’ ability to exit at fair market value.
After 5 years we can ‘go to market’ to renew the debt at current market rates. There is risk that the new terms of the debt are uneconomical and it may be in the best interests of investors to sell the property, repay the debt and return the remaining proceeds to investors.
Further information on the 5 yearly exit mechanic can be found here.