European Loan Conduit No. 40 (LAGARINO): 01 August 2025

The Issuer will make payments on the Notes and the Issuer Loan from payments of principal and interest received by the Issuer under its interest in the loans advanced by the Lender to the Borrower pursuant to the Facility Agreement and the portion of the Loan held by the Issuer, being the securitised loan. On the Closing Date, the Issuer will acquire a 50.62% interest in the Loan.

The Loan will be secured by, among other things, a portfolio of 12 retail assets, of which 9 are shopping centres and 3 are retail park assets located in Spain. The properties offer approximately 480,120 sqm of gross leasable area ("GLA") which is let to 496 unique tenants (924 leases) at an occupancy level of approximately 95.7% by GLA. The Property Portfolio generates €97.6m of gross rental income ("GRI") with a weighted average unexpired lease term to expiry ("WAULTE") of 9.4 years and a weighted average unexpired lease term to first break ("WAULTB") of 3.6 years.

UK, EU & US Risk Retention: For the purposes of satisfying US and EU risk retention requirements and the UK retention rules, Morgan Stanley Principal Funding Inc will, pursuant to the Issuer Loan Agreement, advance a euro loan to the Issuer on the Closing Date. As at the Closing Date, the principal amount of the Issuer Loan will be equal to €21,455,263.16, being equal to no 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: Thunder Logistics 2024-1 DAC, Lugo Funding DAC