HFD Property has secured £88.9m from Bank of Scotland to develop Glasgow’s largest new office at 177 Bothwell Street.
The finance comes from the Bank of Scotland real estate and housing team’s Green Lending Initiative. As part of this, HFD will receive a margin discount of up to 20bps on its cost of funding through achieving green targets, including using renewable energy.
The four-year funding package will enable HFD to complete the 313,116 sq ft office, forming the final phase of its Bothwell Exchange office campus in Glasgow city centre.
It will be the largest multi-occupancy office building in Glasgow. Clydesdale Bank has signed a 22-year lease for 116,000 sq ft and HFD’s managed office division will lease more than 60,000 sq ft. It also boasts Scotland’s first rooftop running track, which will be 150m, with additional space for a roof terrace, and electric vehicle charging points.
Stephen Lewis, managing director at HFD Property Group, said: “Glasgow’s thriving business community needs new, quality office space to support its growth, help attract talent and new occupiers to the city. With Bank of Scotland’s backing, we’ll be able to realise our ambition of supporting Glasgow’s economic growth by providing modern, sustainable space for world-class occupiers.”
Alan Brennan, relationship director for Bank of Scotland Real Estate and Housing, added: “Our latest green loan to the group will help unlock a highly-sought after scheme that will be at the forefront of the commercial real estate market in the city for years to come, while rewarding HFD for its proactive approach in reducing its carbon footprint.”
The deal follows several financial arrangements from Bank of Scotland for HFD developments, including the neighbouring 122 Waterloo Street in 2016, a £39.7m Green Lending Initiative loan for the University of the West of Scotland’s EcoCampus and a £54m investment loan for Sir Ian Wood House in Aberdeen.
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