Goldman Sachs has launched a £646m securitisation of debt held against Blackstone’s UK Logicor portfolio.
The CMBS, to be called the Logistics UK 2015 plc, will come in six tranches rated from AAA down to B and will be a securitisation of the single underlying loan made to Blackstone in April on its £936m portfolio of industrial assets.
The original 69% LTV loan was made to two of Blackstone’s funds, Blackstone Real Estate Partners Europe III and Blackstone Real Estate Partners VII.
According to data reported by Bloomberg, the income of the underlying portfolio is £60m per annum with a 90% occupancy rate. The weighted average lease break is 8.2 years with average expiry at 9.6 years.
The expected structure is as follows (source: Bloomberg):
| Class | Expected rating | LTV (%) |
|---|---|---|
| £312.55m | AAA | 33.4 |
| £67.45m | AA | 40.6 |
| £67.45m | A | 47.8 |
| £60.8m | BBB | 54.3 |
| £76m | BB- | 62.4 |
| £61.75m | B | 69 |
The issue is currently unrated but Fitch and Moody’s have been lined up to rate the deal.
