The pre-sale for a £510 million commercial mortgage backed-security transaction collateralised by a major portfolio of United Kingdom logistics assets owned by Blackstone's Indurent business has launched.
UK Logistics 2025-2 DAC is a £510 million participation in a £760.3 million recourse, first lien mortgage loan, originated by Natixis, London Branch; Natixis Pfandbriefbank AG; Societe Generale, London Branch; and Morgan Stanley Bank. The securitised loan is being sold by Natixis and Societe Generale.
The loan is secured by 114 Blackstone assets, 102 of which are freehold and 12 of which are leasehold interests. The properties are mostly linked to ecommerce, and comprise 9.2 million square feet across the United Kingdom. Concentrations in the North, South East and Midlands represent 41.6%, 24.1% and 20.6% of the allocated loan amount, respectively.
The properties are leased to 1,370 tenants. The largest tenant represents 4.1% of the portfolio rent and 4.1% of total square footage.
The portfolio is managed by Indurent, which was established in 2024 by bringing together the former Industrials REIT and St Modwen logistics businesses. Indurent is a UK-based provider of industrial and logistics warehousing, managing approximately 30 million square feet for over 2,500 customers.
The prior financing comprised a £339.5 million first mortgage loan that was previously securitised in the Stark Financing 2023-1 DAC CMBS transaction, which was repaid in full in August 2025.
The portfolio assets are mainly located in developed suburban areas that have good access to motorways, and are considered "last mile" hubs.
KBRA and Morningstar DBRS are ratings agents.
The largest asset appears to be a portfolio on Manchester's Trafford Park, including Metro 190, let to a perfume group, and Grand Central, let to third-party logistics provider GXO.
Second by percentage of loan balance is a Palletforce warehouse outside Burton-upon-Trent, Staffordshire, totalling 381,122 square feet. The portfolio also includes the vacant Zenith 105 on Ealing Road in Wembley.
In August, Blackstone completed and priced the United Kingdom's largest commercial mortgage-backed securities sale since the global financial crisis, a £1.5428 billion deal involving Haven holiday parks.
That transaction was backed by a senior loan secured on a portfolio of 40 properties, including 39 of the holiday parks in the United Kingdom operated by the Haven Group and its head office. Haven is the United Kingdom's largest holiday park operator based on number of pitches.
The European CMBS market has been busy in 2025 with more issuers, sponsors and asset classes thanks to increasingly competitive pricing. United States private equity giant Blackstone has been by a long way the most active sponsor.
In March, Citibank launched a CMBS deal involving three senior commercial real estate loans of a total of £840 million backed by a giant portfolio of Blackstone Real Estate Partners' industrial assets in the United Kingdom, in the fifth issuance in Europe of the year, as reported.
In February, Blackstone's first European CMBS of the year, the €525 million Sequoia Logistics 2025-1 DAC, the largest euro-denominated issuance CMBS since 2021, priced at a weighted average margin of 192 basis points, the keenest for a direct CMBS in four years, as reported.
By the half-year point the United Kingdom and European commercial mortgage-backed securities market had sailed past the 2023 and 2024 aggregate total, with United Kingdom logistics properties emerging as the standout performer.
First-half 2025 CMBS issuance of €4.7 billion across 10 transactions surpassed the total aggregated 2023 and 2024 CMBS issuance of €3.7 billion, according to analysis by bond rating firm Morningstar DBRS.
The performance came despite a slight pause in April following United States trade tariff announcements, and ongoing geopolitical uncertainty. Issuance has since rebounded quickly and there were five CMBS deals valued at €2.5 billion in the second quarter.
CMBS captures 3.2% of the total year-to-date European securitisation volume, an increase from 0.9% last year, according to Morningstar, before the latest deal.
Financing of industrial properties has dominated issuance this year. Appetite for big-ticket industrial portfolio and platform deals underscores investor confidence in the future performance of the industrial sector in the United Kingdom, according to CoStar analysis of the sector.