Bank of America and Morgan Stanley have launched a £370 million commercial mortgage-backed security backed by prime urban logistics properties owned by Blackstone.
The CMBS, called UK Logistics 2024-2 DAC, is secured by two separate loans to refinance the acquisition of two portfolios of logistics assets across the UK.
It is the fifth CMBS transaction in Europe this year, three of which included collateral comprising Blackstone’s logistics properties.
The CMBS comprises five tranches and is similar in size to previous Blackstone CMBS logistics transactions. The Class A notes, rated triple AAA, total £200.6 million, Class B and C are £32.7 million and £34.2 million respectively. Class D and E are £54.1 million and £48.4 million respectively.
The five CMBS transactions this year totalled €2.3 billion. Last year, there were three CMBS transactions, totalling €909 million, 40% less than the €1.5 billion issued in the first four months of 2022, before the market came to a grinding halt. The figure pales in comparison with the €7 billion issued in in 2021.
CMBS deals have been pricing tighter as the year progressed thanks to falling interest rates. Last month, Blackstone's European logistics CMBS, Thunder Logistics 2024-1, had a weighted average margin of 238 basis points and a loan to value of 63%, as reported.