Société Générale is structuring its first single-property, single-tenant commercial mortgage securitization in Europe. The £229.1 million ($415 million) White Tower 2006-2 is backed by Alban Gate, a London office building that is leased to J.P. Morgan.

Jason Russell, head of the ABS syndicate group, said the transaction's structure is largely similar to previous White Tower issuances, which SG aims to bring to market three times a year. "The main difference on this deal is that it is the first single property, single tenant deal we have done," he said.

Richard Buckland, analyst at Standard & Poor's, said beyond the retail sector, single-asset transactions are unusual. "The asset needs to be big enough to justify a securitization, and not many go down this route," he said. "Shopping centres have multiple tenants. With this deal, it is just one principal tenant. But that tenant is J.P. Morgan, an AA- rated firm. This helps mitigate the concentration risk."

Buckland added the transaction has a four-and-a-half-year loan length, which is a relatively short loan term, and a very long lease to the tenant at fourteen-and-a-half years. "This is a very good ratio between loan length and lease length," he said. SG is acting as originator and arranger on the deal, which was rated by S&P and Moody's Investors Service.