Invista Real Estate Investment Management said today that the refinancing of a soon-to-expire E142m (£127m) loan for its French joint venture company, Celsius, would be ‘unlikely’.

With Propinvest Group, its 50% joint development partner, it is in discussions with the lender, Kaupthing, and third parties to refinance the loan, which expires at the end of this month.

Invista said that refinancing with Kaupthing would be difficult because the bank was granted a moratorium on 24 November on payments to creditors by the Icelandic authorities as a prelude to possible receivership.

In a trading update this morning, it said: ‘A successful refinancing with Kaupthing is unlikely to be achievable. The absence of any meaningful liquidity in the debt markets means it is also extremely difficult to agree new financial terms with any other potential lending party.

The carrying value of Invista’s investment in Celsius stood at £14.5m at 30 June.

Investa’s assets under management at 30 November were £6.6bn down from £8bn in June.

It also showed that fund flows in the 11 months to 30 November included £377m of redemption payments.