Specialist lender Together has priced a £542m small balance commercial real estate mortgage-backed securitisation, its second public MBS transaction in two months.
Together Asset Backed Securitisation 2026 – 1-CRE-6 CRE1 plc (CRE6) is Together’s sixth public small balance commercial real estate MBS.
CRE6 is backed by a portfolio of first and second charge mortgages secured against commercial, residential and mixed-use properties in England, Wales and Scotland.
The portfolio is made up of 98.6% first charge mortgages, with self-employed borrowers accounting for 26.6% of the underlying borrowers.
84.50% of CRE6’s issued notes are expected to be rated AAA(sf) by Fitch and AAA(sf) by DBRS, the lender said.
The transaction has a weighted average cost of placed notes of 1.03% at a 95% advance rate.
The transaction adds to Together’s existing 13 public mortgage-backed securitisations, eight private securitisations, secured notes and revolving credit facility.
The pricing of CRE6 follows the group’s issuance of £300m second lien secured notes earlier this week.
Richard Rowntree (pictured), group chief executive officer of Together, says: “We are delighted to announce the successful pricing of our latest small balance commercial real estate MBS, the £542 million CRE6, as we continue to increase our support for UK SMEs.”
Gary Beckett, group managing director and chief treasury officer at Together, adds: “Issuing two public MBS transactions and completing a significant secured notes issuance in the space of two months highlights the strength of our platform, the quality of our loan book and the ongoing support from our investors.
“Since January, including CRE6, we have now raised or refinanced over £1.3 billion across three transactions.”
Citibank and Lloyds acted as co-arrangers on the transaction, while BNP Paribas, Citibank, HSBC, Lloyds, Natixis and Santander acted as joint lead managers.
