Sage AR Funding 2025 No.1 PLC: 24 May 2025

The Issuer will make payments on the Notes from payments of principal and interest received by the Issuer under the Loan advanced pursuant to the Facility Agreement. On the Closing Date, the Issuer will acquire 100% interest in the Tranche A Loan from the Loan Seller, and will advance the Tranche R Loan to the Company.

The Loan will be secured by, among other things, a portfolio of residential rented properties owned by Sage Rented Limited and located in the United Kingdom.

The Property Portfolio comprises 2,123 completed affordable and social housing units across 119 development sites in England, totalling 4,358 beds. According to a lender-mandated JLL valuation report dated 13 February 2025, the portfolio is valued at approximately £452.2m MVSTT12 (Market Value Subject to Tenancies) and approximately £369.5m EUVSH3 (Existing Use Value Social Housing). The Property Portfolio generates £19.8m GRI (Gross Rental Income) and £15.4m NOI (Net Operating Income) annually. The Property Portfolio is highly granular with the top 10 developments (by MVSTT) accounting for 29.4% of portfolio GRI, 27.5% of MVSTT and 30.6% of EUVSH. No property accounts for over 0.12% of the Property Portfolio by MVSTT.

Significant investor: On the Closing Date, a single investor will acquire 100% of the Class A1 Notes and Class A2 Notes.

UK & EU Risk Retention: Sage Rented Limited, as originator, will retain (itself or acting through the Company, its wholly owned subsidiary) a material net economic interest of not less than five per cent in the securitisation in accordance with the text of (i) Article 6(1) of Regulation (EU) 2017/2402. As at the Closing Date, such retained material net economic interest will comprise the first loss tranche, by way of a subscription by Sage Rented Limited of the Class R Notes.

Compare/contrast: Sage AR Funding 2021 plc