UK Logistics 2024-2: 10 December 2024

The Issuer will make payments on the Notes and the Issuer Loan from payments of principal and interest received by the Issuer under loans advanced by the Loan Seller to the Borrowers pursuant to the Mileway Facility Agreement and the Indurent Facility Agreement. On the Closing Date, the Issuer will acquire a 100% interest in the Mileway Loan and a 100% interest in the St. Indurent Loan, in each case pursuant to the Loan Sale Documents.

The Loans will each be secured by, among other things, a portfolio of logistics and industrial properties located throughout England.

The Indurent Property Portfolio comprises 39 mostly urban logistics properties located across the United Kingdom. The Properties offer approximately 2.50m sqft of total lettable area which is currently let to 207 unique tenants at an occupancy level of 83% as at the Cut-Off Date. The Indurent Property Portfolio was built or refurbished in 2004.

The Mileway Property Portfolio comprises 17 urban logistics assets and 7 industrial outdoor storage assets located across the United Kingdom. The Properties offer approximately 4.55m sqft of total lettable area which is currently let to 32 unique tenants at an occupancy level of 92% as at the Cut-Off Date. The urban logistics assets in the Mileway Property Portfolio were built or refurbished in 2009.

UK, EU & US Risk Retention: For the purposes of satisfying the UK, EU and US risk retention requirements, Morgan Stanley Principal Funding Inc (the Retaining Sponsor) will 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 £19,473,684, being equal to not less than 5% of the sum of (i) the aggregate principal amount outstanding of the Notes and (ii) the principal amount of the Issuer Loan on the Closing Date.

Compare/contrast: UK Logistics 2024-1, Last Mile Logistics CMBS 2023-1 UK DAC