Blackstone has priced its third European commercial mortgage backed securitisation this year, and the first since war broke out in Iran.
The UK Logistics 2026-2 DAC transaction is a £616.4 million CMBS secured at a 65% loan to value ratio against a portfolio of 184 last-mile industrial and logistics assets across the UK, owned by Mileway, a Blackstone portfolio company. The assets are 92% occupied.
There has been keen interest in how well the transaction prices. In 2025, the European CMBS market recorded its strongest year on record, with approximately €6.8 billion of issuance, including €5.3 billion in the UK, where Blackstone accounted for roughly 72% of European and 79% of UK issuance.
In January, the issuance of Sirius Logistics 2026-1 UK DAC set a strong pricing tone for the European CMBS market in 2026, with expectations rising for sustained and large-scale issuance activity throughout the year.
That CMBS was priced at the tightest level since the onset of the pandemic at a weighted average margin of 154 basis points and underwritten at 60% loan to value. Pricing had become increasingly competitive in 2025, with weighted average note margins reaching lows of plus 1.72% and plus 1.79% in the UK and Europe, respectively.
There was then a temporary pause from March to May on the back of geopolitical events.
The latest transaction was led by Barclays, Wells Fargo and Standard Chartered Bank as joint lead managers.
The pricing breaks back to a weighted average note margin of 179 basis points. Across the note classes it priced at:
- Class A: 1.1x at final guidance (135-plus weighted price initial reference); tranche size: £378.5 million; final spread: +135 basis points
- Class B: 2.3x at guidance (160-170 WPIR); tranche size: £52.4 million; final spread: +160bps
- Class C: 2.2x at guidance (180-190 WPIR); tranche size: £61.6 million; final spread: +185bps
- Class D: 1.6x @ guidance (285-295 WPIR); tranche size: £73.3 million; final spread: +285bps
- Class E: tranche Size: £50.598 million; final Spread: +365bps
The transaction, which CoStar News revealed two weeks ago was being launched, was prepared as the first CMBS since the start of war in Iran in March.
Assets include the 587,360-square-foot Autobase industrial estate in Tividale, near Dudley, in the West Midlands and an estate at the Windmill Industrial Estate in Denton near Manchester.
Today, the return to activity has been added to with a presales document launched for a Blackstone-backed transaction collateralised by £463.5 million of social housing assets in the UK. Morgan Stanley and Wells Fargo have launched Sage AR Funding 2026 No.2 plc.
The CMBS's are a welcome return of activity in Europe for those looking for alternative real estate financing solutions. After a revival in 2025, new CMBS issuance in the UK started 2026 well with four coming to market by February. But since the Iran war began, only HSBC's launch of the refinancing of Westfield's Stratford City has taken place.
Mileway is the largest owner of last-mile logistics real estate assets in Europe. As of 31 March 2026, it owned and managed 1,585 assets across 10 countries, including 665 in the UK. Blackstone is a global private equity firm with approximately $1.3 trillion of assets under management, including approximately $618 billion of real estate assets across multiple commercial real estate sectors globally as of the final quarter of 2025.
CoStar News revealed that Blackstone had refinanced its Mileway logistics platform with €7.5 billion of debt from existing and new lenders in December 2023. When Mileway was recapitalised early in 2022, it was valued at around €21 billion.