M&G plc said it has signed a 20-year lease with the Stirling Development Agency (SDA) to occupy new offices to be built at the Kildean Business Park in Stirling.

M&G staff currently based at its long-time Craigforth HQ are due to move to the new building in 2022.

The SDA, a 50-50 joint venture between Stirling Council and Cromwell Property Group, is due to begin building the new site in early 2021.

M&G announced in 2019 a phased move from its current five UK locations to three by 2025, with Stirling and Edinburgh operations at the heart of its strategy.

A recently opened head office in London complements the Scottish offices. M&G plc employs 1,300 staff in Scotland out of around 6,000 worldwide.

Formed in 2017 by the merger of M&G Investments and Prudential UK, M&G plc manages about £340 billion of assets for over five million retail customers and more than 800 institutional clients worldwide.

“In line with M&G plc’s goal of reducing its corporate carbon emissions to net zero by the end of 2030, the new building is expected to be rated ‘excellent’ by leading sustainability assessors, Building Research Establishment Assessment Method (BREEAM), putting its sustainability performance in the top 10% of new non-domestic buildings in the UK,” said M&G.

“For example, there are plans for a direct cycle route to the building and on-site facilities will include a cycle hire scheme and electric car charging spaces.”

M&G chief finance officer Clare Bousfield said: “Because of the quality and number of talented individuals in the finance and technology sectors, Scotland remains an important source of talent for M&G plc.

“The new office will provide a sustainable working environment, where we can better collaborate to deliver exceptional outcomes for our customers and clients, as we adopt more flexible and digital-first ways of working.

“We are pleased to continue our planned investment in UK infrastructure to support our long-term growth ambitions.”

SDA director David Lawrence said: “SDA is delighted to have agreed a long-term lease with M&G plc for a new modern office at Kildean Business Park to meet their space and functional requirements in Stirling and we look forward to collaborating with them up to their occupation in 2022 and beyond.

“We are confident that this will lead to further office occupiers choosing Kildean as their future office location, with the area appealing to a wide range of companies from financial services to life sciences.”

Stirling Council Leader Scott Farmer said: “This is fantastic news which underlines Stirling’s reputation as a prime location to attract and retain business investment.

“Prudential UK, now part of M&G plc, has played a cherished part of the fabric of this city since 1997 and this commitment to a further 20 years will open up even greater employment opportunities for the people of Stirling.

“With the COVID-19 pandemic creating such uncertainty over business and employment, this decision will come as a massive relief to many local families and we are delighted to see this continued and inclusive economic development secured for the area.”