Industrial finance

Warehouse and industrial refinance: owner-occupier or investment

Industrial refinance is one of the most active segments in commercial lending. Strong tenant demand, low void rates and rising values make the sector genuinely attractive to lenders — and pricing has followed.

Audience: Industrial owners and investors

Situation: Industrial and warehouse property has re-rated strongly — refinancing captures the value gain and often materially reduces your rate.

Primary: Commercial Loans

The situation

Owners refinancing 5-year-old commercial mortgages routinely find higher LTV available, better rates, and structures (interest-only, longer amortisation) that materially improve cash yield.

How we approach it

We assess whether the incumbent lender is competitive on refinance, or whether moving to a new lender genuinely improves terms. The whole cost — arrangement fees, legals, valuation — is factored honestly.

What that looks like in practice

Owner-occupier up to 75% LTV on strong industrial
Investment up to 70% LTV, higher on strong covenants
Interest-only available on investment where evidenced
Portfolio facilities where you own 3+ industrial units
Sale-and-leaseback compared where full capital release is the goal

Typical timeline

Weeks 1-2
Property valued informally, current lender assessed vs market.
Weeks 3-6
Application, valuation, credit.
Weeks 6-10
Offer, legals, completion.

Common questions

Is now a good time to refinance industrial?

Values have strengthened materially since 2020; refinancing today captures that value. Rates are off recent peaks — worth modelling both fixed and tracker.

How is the property valued?

Investment: yield on rental income. Owner-occupier: hybrid of bricks and covenant. Get a realistic view before applying.

Can I add a mezzanine or extension into the refinance?

Yes — either fund refurb via a bridge and refinance post-works, or capitalise smaller works into the main loan.