UK Logistics 2025-2 DAC, a £507 million Blackstone-sponsored commercial mortgage-backed security, collateralised by 114 Indurent logistics assets, has priced at the second-most competitive margin for a CMBS in Europe in nearly five years.
CoStar News reported last month on the pre-sale for the CMBS, a participation in a £760.3 million recourse, first lien mortgage loan, originated by: Natixis, London Branch; Natixis Pfandbriefbank AG; Société Générale, London Branch; and Morgan Stanley Bank. The securitised loan is being sold by Natixis and Société Générale.
The loan is secured by 114 Indurent 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 UK.
The final pricing was a weighted average margin of 199 basis points, which is 44 basis points less than Blackstone’s UK Logistics 2025-1, which priced in April, and nine basis points tighter than UK Logistics 2024-2, which priced in November 2024.
The only keener pricing in Europe in the past four-and-a-half years was Blackstone's first European CMBS of the year, the €525 million Sequoia Logistics 2025-1 DAC. At the time that was the largest euro-denominated issuance CMBS since 2021, and priced at a weighted average margin of 192 basis points, as reported.
It understood that investor interest was strong again for the Indurent CMBS, with the book at 2.4 times coverage and more than 20 investors participating in the deal, including a number of key CMBS buyers returning to the market.
Year-to-date European CMBS issuance now totals €6.2 billion across 11 transactions, 68% of which are sponsored by Blackstone, compared with four deals and a €1.6 billion issuance volume in 2024.
Morgan Stanley, Natixis, and Société Générale acted as arrangers and joint lead managers.
Investor interest will have been piqued by Blackstone's involvement with Indurent continuing to perform strongly on leasing and Blackstone having grown its footprint four times over four years.
The properties are leased to 1,370 tenants and the portfolio is managed by Indurent, which was established in 2024 by bringing together the former Industrials REIT and St Modwen logistics businesses.
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 largest asset is 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.
The strong performance in European issuance has come despite a slight pause in April following United States trade tariff announcements, and ongoing geopolitical uncertainty.
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.