Goldman Sachs has been selected to provide the debt on Blackstone’s latest purchase of assets for its Logicor vehicle.
Goldman will extend £250m in senior debt to fund the purchase of Project Wood, a portfolio of sheds it purchased from Oaktree Capital for around £360m in April.
The loan represents a 70% loan-to-value ratio.
In addition to the senior debt from Goldman, Blackstone may also seek to add a mezzanine element to the financing package.
Once the deal is completed, Goldman will decide whether to make the loan part of a CMBS or syndicate the deal.
Goldman chose to securitise the previous deal it funded for Logicor. Investor appetite meant the process was not straightforward.
Sources suggest that the bank may prefer to go down the CMBS route once more, rather than syndicate with the higher margin, meaning this deal may be better received.
The underlying portfolio comprises 16 assets, of which the largest is the 1.3m sq ft Sherburn Distribution Park near Leeds, Yorkshire.
Debt held against the portfolio was originally part of a non-performing loan portfolio bought by Lone Star from Eurohypo in 2013. Lone Star then foreclosed and sold it to Oaktree for £280m in June last year.
Goldman has been building a strong relationship with the logistics investor and this is the second major facility it has extended to it in recent months.
The margin on the deal was slightly higher than the recent St Pancras deal it undertook for Blackstone in April. That process saw Goldman provide £680m at close to 250 bps over LIBOR to refinance all of Logicor’s UK portfolio.
