Bank of America, Standard Chartered Bank and Wells Fargo have priced Sirius Logistics 2026-1 UK DAC, the first European commercial mortgage-backed securitisation of 2026.
It is the most tightly priced sterling-denominated CMBS since the pandemic.
The transaction is for £500 million, expanded from £375 million at launch, secured against a portfolio of 124 last‑mile industrial and logistics assets across the UK, owned by Mileway, a Blackstone portfolio company.
It securitises an £804 million loan provided by Bank of America, Standard Chartered and Wells Fargo to finance 126 properties at a 60% loan to value. That refinanced three loans originated by BoA in 2021. Moody's and Morningstar DBRS have been acting as ratings analysts.
The deal was priced with a weighted average margin of 154 basis points and underwritten at 60% loan to value.
Pricing became increasingly competitive last year, with weighted average note margins reaching recent lows of plus 1.72% and plus 1.79% in the UK and Europe, respectively, for the latest transactions.
The more competitive pricing notably began with Blackstone's first European CMBS of 2025, the €525 million Sequoia Logistics 2025-1 DAC. At the time it was the largest euro-denominated issuance CMBS since 2021, and priced at a weighted average margin of 192 basis points, as reported, in what was the keenest level in Europe in four-and-a-half years.
Investor demand is understood to have been strong for the latest transaction, with the book approximately two times oversubscribed at the larger size. That underscores continued confidence in high‑quality UK logistics collateral for the transactions.
The portfolio is concentrated in UK last‑mile markets, with nearly 75% of value in London, the South East and the North West. The assets have approximately 90% occupancy and a diversified tenant base.
New European CMBS issuance soared in 2025 to €8.7 billion in 17 transactions across multiple sectors, against €2.2 billion in five transactions the previous year, to chalk up the highest annual volume by a distance for more than a decade, according to a report from Scope. That included €5.3 billion in the UK.
Blackstone accounted for roughly 72% of European and 79% of UK issuance.
The pricing for the latest transaction sets a strong tone for the European market in 2026, with expectations for sustained and significant issuance throughout the year.
Ratings analyst Scope said it expects the momentum to continue in 2026, driven by the "growing role of private credit in commercial real estate financing alongside sustained demand for securitisation as an alternative to bank lending".
Morningstar DBRS said it expects 2026 to show similar numbers.
"We expect between 15 and 20 securitisations for approximately €9 billion to €10 billion. Once again, [industrial and logistics] collateral is likely to be the most common asset type securing European CMBS issuances, but we also expect multifamily, office, and retail properties to find their way into the CMBS market in 2026. In addition, we would not be surprised to see less traditional CRE included in future transactions, such as the 39 holiday parks in Caister Finance DAC last year.
"Last year was also pivotal because several sponsors re-entered the CMBS market for their financing needs. For example, The Carlyle Group, Starwood Capital Group, and GoldenTree Asset Management decided, for the first time since the GFC, to issue CMBS to fund their European CRE investments. Blackstone has remained the biggest sponsor of European CMBS in recent years, but the additional sponsors have improved diversity, which may help to consolidate CMBS' position as a reliable source of funding for the European CRE market."