KBRA Assigns Preliminary Ratings to UK Logistics 2026-3 DAC

KBRA UK (KBRA) is pleased to announce the assignment of preliminary ratings to five classes of UK Logistics 2026-3 DAC, a CMBS single-borrower transaction.

The collateral for the transaction is a £603.0 million participation in a £753.0 million limited recourse, first lien mortgage loan, originated in June 2026 by Deutsche Bank AG, London Branch, Standard Chartered Bank and Qatar National Bank (Q.P.S.C.) London Branch. The floating-rate loan has an initial term of two-years with three one-year extension options.

The loan is secured by the borrower’s freehold (36 assets) and long leasehold (three assets) interests in a portfolio of 39 logistics properties located throughout United Kingdom (UK) with concentrations in the Midlands and Southeast regions, representing 37.0% and 30.6% of ALA, respectively. The portfolio comprises approximately 300 units, totaling 7.1 million square feet (sf) of built area.

As of February 2026, the properties are 88.9% leased to approximately 215 unique tenants, comprising a variety of multinational, regional, and local firms.

KBRA analysed this transaction primarily using our European CMBS Rating Methodology, which includes our evaluation of the underlying collateral properties’ financial and operating performance, to determine KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value. KBRA capitalisation rates were applied to each asset’s KNCF to derive values that were, on an aggregate basis, 35.0% lower than the third-party aggregate value for the portfolio. The securitised loan has a KLTV of 102.1%.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

• CMBS: European CMBS Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA UK

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency UK is located at 1st Floor, Marble Arch House, 66 Seymour Street, London W1H 5BT, England.

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Contact

Analytical Contacts

Dinesh Thapar, Senior Director (Lead Analyst)
+44 20 8148 1067
[email protected]

Rahat Virji Allana, Associate Director
+44 20 8148 1028
[email protected]

Nitin Bhasin, Senior Managing Director, Global Head of CMBS (Rating Committee Chair)
+1 646-731-2334
[email protected]

Business Development Contacts

Miten Amin, Managing Director
+44 20 8148 1002
[email protected]

Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
[email protected]