The plan by Lloyds Banking Group (LBG) to transform its Port Hamilton Scottish Widows building on Morrison Street in Edinburgh into a state-of-the-art innovation hub is to get £135 million of funding via a “complex financing transaction” from HSBC UK.
As part of a £200 million redesign plan led by Drum Property Group, the building will be refurbished to the highest sustainability standards — and HSBC’s financing will be provided as a green loan facility.
The £200m redevelopment will be spearheaded by Drum Property Group and will deliver 282,000 sq ft of modern office space.
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.
The Port Hamilton complex will become Lloyds Banking Group’s main base in Scotland following completion of the works in 2027. The building has been home to Scottish Widows for about 30 years.
Lloyds Banking Group employs around 10,000 people in Edinburgh. Its brands include Bank of Scotland, Scottish Widows, Halifax and Lloyds.
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.”