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BAMS CMBS 2018-1: 22 July 2018

This is the securitisation of a portion of Sterling floating rate senior commercial real estate loans which was advanced by Morgan Stanley Principal Funding, Inc and Bank of America Merrill Lynch International Limited to borrowers ultimately sponsored by Blackstone Group L.P. and will be secured by a portfolio of logistics and industrial properties located throughout England and Wales.

The Portfolio comprises 59 urban logistics and multi-let industrial properties situated throughout the United Kingdom. The properties offer approximately 6.8 million feet square of total lettable area, which is currently let to over 300 tenants (396 units) with a physical occupancy of 92.2%. The Portfolio is well diversified across 39 cities in the UK, with the majority located in and around major UK logistical hubs. 70% of the Portfolio's market value is comprised of last mile logistics assets.

EU risk retention: Bank of America Merrill Lynch International Limited and Morgan Stanley Bank, N.A., as originators, will retain a combined material net economic interest of not less than 5% in the securitisation in accordance with the text of each of Article 405(1) of the Capital Requirements Regulation, Article 51(1) of the AIFM Regulation and Article 254(2) of the Solvency II Regulation. As at the Closing Date, such interest will be comprised of the Issuer Loan, which has a nominal value equal to at least 5% of the aggregate Principal Amount Outstanding of the Notes of all Classes, and the principal balance of the Issuer Loan. As at the Closing Date, each of Bank of America Merrill Lynch International Limited and Morgan Stanley Bank, N.A. will hold 50% (by principal balance) of the Issuer Loan, corresponding to the respective portion of the Senior Loan originated by it.

US Risk Retention: This securitisation transaction will be subject to the credit risk retention requirements of Section 15G of the Securities Exchange Act of 1934. An economic interest in the credit risk of the securitised assets in this transaction is expected to be retained pursuant to Regulation RR (17 CFR § 246.1 et seq).

Compare/contrast: Taurus 2017-2 UK SRL