Blackstone has sold C$522.5 million in Canadian mortgage bonds backed by warehouses in Toronto and Montreal, among other areas, Bloomberg reported.

The transaction marks a rare instance of this type of deal in Canada. Commercial mortgage-backed securities (CMBS) deals are uncommon north of the 49th parallel.

The highest-rated portion of the deal, graded Aaa by Moody’s, was priced at 190 basis points above the compounded Canadian Overnight Repo Rate Average (Corra), according to Bloomberg. The lowest tranche, rated Baa3 by Moody’s, fetched 365 basis points above Corra, sources familiar with the deal told the news service.

The sources spoke to Bloomberg spoke on condition of anonymity due to the private nature of the transaction.

Marketed as BX 2024-PURE, the deal offers interest-only payments to note buyers; it is backed by properties from Pure Industrial, a Canadian REIT that a Blackstone fund acquired in 2018, the Bloomberg reported.

Citigroup and Royal Bank of Canada managed the transaction but have not provided comments, while RBC did not immediately respond to a request from Bloomberg for comment.

The last CMBS deal in Canada was being marketed in May. That was the first Canadian CMBS offering in more than a year, according to Bloomberg.

Photo: Blackstone