European Loan Conduit No. 26 (Triton)

This new addition to the ELOC programme sees a securitisation of four commercial mortgage loans
originated by Morgan Stanley Bank International Ltd, with the loans secured on 46 properties located
throughout the UK (although Central London accounts for 88% of the pool by value). Office usage
make up 71.8% of the property portfolio, and self-storage centres 28.2%. Average seasoning is just
under 3mnths, with a current WA LTV of 65.8%. The average loan size is Stg150.3mln, with the larg-
est loan accounting for 48% of total pool.

Devonshire Square Estate, the largest loan in the transaction is secured by an estate of office, retail
and residential properties in the City. The whole loan balance is Stg340mln, but only the senior portion
of Stg288.75mln will be securitized. The Estate comprises of 12 buildings of office, retail, and resident-
ial space in addition to 146 car parking spaces. There are 99 leases made to 32 tenants throughout the
estate, the largest tenants (by gross rental income) being AON Ltd (59.1%) and Hammonds (16.9%).

The second largest loan (26.4% of the portfolio) is secured by a portfolio of 30 self-storage facilities,
23 of which are in London and Greater London. Again, only the senior portion (Stg 158.4mln) will be
securitized. As at the cut-off date, approximately 14,000 tenancies are in place, with the largest prop-
erty representing 8.5% of the portfolios rental income and the top five accounting for 35.5% of income.

Eclipse, viewed as a comparator and competitor priced the same day. Eloc's Class A notes managed to
price 1bp inside Eclipse, with Eloc's pool considered slightly better in terms of quality, and a wal shorter
by a few months. The B to E notes also all met talk but further down the capital structure Eloc did less
well. The Class G notes came at +68 versus guidance talk of 55-60bps, and the Class H notes at +85
against +80 area.


Compare/contrast: DECO (12) Series UK Conduit 4 plc, Indus (Eclipse 2007-01),