STARK Financing 2023-1 DAC: 06 November 2023

The Issuer will make payments on the Notes and under the Issuer Loan from payments of principal and interest received by the Issuer under a loan advanced by the Loan Sellers to the Borrowers pursuant to the Senior Facility Agreement. On the Closing Date, the Issuer will acquire a 85.25% interest in the Loan. The Loan will be secured by, among other things, a portfolio of logistics properties located throughout England, Wales and Scotland.

The Property Portfolio comprises of 103 mostly Last Mile Logistics properties. The Properties offer approximately 7.09mn sqft of total lettable area which is currently let to over 1,300 tenants at an occupancy level of approximately 94%.The Portfolio is geographically diversified across the UK, with a significant concentration in the North West (24% of the lettable area and 24% of gross rental income), Midlands (15% GLA, 15% GRI) and Yorkshire & The Humber (15% GLA, 14% GRI).

UK, EU & US Risk Retention: For the purposes of satisfying US, EU and UK risk retention requirements, Bank of America Europe DAC (the Retaining Sponsor and the BofA Issuer Lender) will, pursuant to the Issuer Loan Agreement, advance a sterling loan to the Issuer on the Closing Date. As at the Closing Date, the principal amount of the Issuer Loan will be equal to £14,484,210.53, being an amount equal to not less than 5% of the aggregate of (a) the aggregate of the Principal Amount Outstanding of the Notes of all Classes on the Closing Date, and (b) the principal balance of the Issuer Loan on the Closing Date.

Compare/contrast: Last Mile Logistics CMBS 2023-1 UK DAC