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Blackstone upsizes UK industrial loan to refinance Mileway assets
The refinancing follows strong debt investor demand, boosting the planned issuance from just over £600M to £1B and securing UK last-mile logistics assets totaling about 10M SF.
Blackstone has increased the size of a loan it is taking out to refinance a portfolio of UK last-mile logistics assets owned through its Mileway platform, after strong demand from debt investors, according to Bisnow.
Investors bought £1B of commercial mortgage-backed securities secured against a 10M SF, £1.6B portfolio of UK assets. The original plan was to sell just over £600M of bonds, but demand led Blackstone to upsize the debt issuance.
The loan being securitized was originally provided by a group of banks led by Barclays and carried an interest rate margin of 1.85%, according to a ratings report from KBRA. The bonds were bought by a group of 25 investors, and the securitization is part of a broader Mileway debt refinancing by Blackstone.
Bisnow said the refinancing activity includes a June deal in which investors bought £650M of CMBS bonds backed by income from a portfolio of 184 Mileway UK properties. It also follows a month later, when Blackstone raised more than €6.5B to refinance predominantly secured loans.