Transformation of landmark Lloyds Edinburgh office backed with £135m of HSBC money
“The redevelopment will deliver the highest sustainability standards, minimise embodied carbon, and create an exceptional workplace” – Tim Williams, HSBC Asset Management,
A £135 million funding package from HSBC is to be used to help revamp a landmark Edinburgh office building that houses part of rival lender Lloyds Banking Group.
HSBC UK said it was supporting the transformation of the vast Port Hamilton building on Morrison Street in the city’s west end into a “cutting-edge workplace”.
News emerged last year that the Scottish Widows building was to undergo a £200m redesign in partnership with Drum Property Group, to become Lloyds’ main base in Scotland. Lloyds, which owns Scottish Widows and Bank of Scotland, plans to create a “state-of-the-art innovation hub” in the heart of the capital.
It has now been confirmed that HSBC UK will be backing the building’s transformation with a £135m “green” loan facility.
The redevelopment will be spearheaded by Drum Property Group and will deliver 282,000 square feet of modern office space. Its banking tenant will take a new 21-year lease when redevelopment completes towards the end of 2027, which represents one of the largest pre-let agreements ever secured in Edinburgh’s commercial property market.
Located in the heart of Edinburgh’s financial district, the Port Hamilton building has been home to Scottish Widows for some 30 years.
The transaction was delivered through collaboration between HSBC’s asset management, private bank and real estate finance teams with legal counsel provided to HSBC by international law firm CMS.
Tim Williams, head of real estate investment at HSBC Asset Management, said: “We were delighted to conclude this finance facility as part of a wider project to transform this landmark building. The redevelopment will deliver the highest sustainability standards, minimise embodied carbon, and create an exceptional workplace.”
Siobhan Gall, regional head, HSBC UK real estate finance, added: “We are delighted to support the redevelopment of this prime office scheme in Edinburgh, which is anticipated to set a new benchmark for sustainability in the market.
“This complex financing transaction was successfully delivered as a result of close collaboration between all parties involved, providing an excellent example of the value HSBC can bring to its clients, by leveraging its global network.”
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