KBRA Affirms All Ratings for Last Mile Logistics CMBS 2023-1 UK DAC
2 Aug 2024 | London
KBRA affirms all of its outstanding ratings for Last Mile Logistics CMBS 2023-1 UK DAC, a CMBS single-borrower transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a decrease in the KLTV from securitisation. However, the magnitude of the change does not warrant rating changes at this time.
The collateral for the transaction is a single, limited recourse, first lien mortgage loan secured by the borrowers’ freehold (29 properties) and leasehold (eight) interests in 37 industrial assets. Together, the properties comprise 3.4 million square feet (sf) and are located across six regions throughout England in the United Kingdom (UK), with the largest being the South East (58.2% of loan balance).
There have been no property sales since securitisation and the loan balance remains at £289.8 million.
KBRA utilised information obtained from the trustee and the servicer to analyse the loan collateral. The analysis produced a KNCF of £21.9 million and KBRA value of £341.2 million (£102 per sf). The resulting in-trust KLTV is 84.9%, down from 86.8% at securitisation. KBRA assigns a KPO of Perform to the loan.
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