Bank of America has launched a £227.3 million commercial mortgage-backed securitisation collateralised by a portfolio of principally industrial properties in England and Scotland owned by GoldenTree Asset Management.
GoldenTree acquired the properties in November from Abrdn Property Income Trust, as CoStar News reported.
Bank of America originated the floating-rate loan backing the securitisation, Taurus 2025-4 UK DAC, according to deal analysis by Kroll Bond Rating Agency. The floating-rate loan has an initial term of three years, with the option of two one-year extensions. An £11.4 million portion of the loan will be held in the form of an issuer loan outside the securitisation.
Proceeds from the loan will be used to refinance existing debt, including financing used for the acquisition of the properties.
The loan is backed by interests in a portfolio of 36 assets, which together comprise 3.1 million square feet. The use of the properties is largely industrial – 68% by allocated loan amount – with retail accounting for 21%, and office the remainder.
The properties are leased to 107 unique tenants. The largest tenant, DIY store group B&Q, representing 6.3% of the portfolio rent and 3.1% of total square footage. As of May 2025, the properties are 89.9% leased.
In general, there is ongoing demand for warehouse and distribution space as e-commerce retailers and brick-and-mortar stores with an online presence continue to push for faster deliveries. UK industrial supply has risen by 29.9% over the past five years, according to CBRE. However, over the same period, prime rents increased by 74.6%, indicating continued robust demand in the sector.
A valuation report prepared by CBRE in May 2025 determined an aggregate market value of £349.7 million.
The portfolio’s average rents on occupied space are approximately 8.7% below market rent, based on the CBRE valuation report. Leases representing 30.9% of base rent are scheduled to break or expire by the end of next year.
The two largest assets by allocated loan amount backing the loan are retail properties.
The 61,409-square-foot Welwyn Garden City Morrisons in Welwyn Garden City is fully leased by Safeway Stores until March 2048.
The 92,400-square-foot Mucklow Hill B&Q in Halesowen, in the West Midlands, has a lease scheduled to expire by December 2031. Based on conversations with the asset manager, B&Q is looking to extend the lease to 2040, according to KBRA.
The largest industrial property by allocated loan amount backing the loan is in Rotherham. The Ickles Way properties are three purpose-built industrial buildings covering 368,471 square feet. The property is 100% let to The Symphony Group, which makes fitted furniture, until September 2034.
The second largest is Tetron 141, a vacant logistics warehouse covering 142,368 square feet in Swadlincote Derbyshire. The property underwent a refurbishment that completed last month, according to KBRA. The asset manager is in active discussions with a prospective tenant, it added.