Drum Property Group, a company engaged in property development, investment and management, will lead the £200m ($249.5m) redesign of the Lloyds Banking Group’s (LBG) headquarters building in Edinburgh, Scotland.
The eight storey Port Hamilton building, with its “distinctive curved roof”, will be transformed into a “state-of-the-art” innovation hub for LBG, a UK-based financial services group.
This building redesign is set to become one of Edinburgh’s “largest” pre-letting deals, stated Drum Property Group.
The complex will become LBG’s central hub in Scotland upon completion in 2027.
Located in Edinburgh’s financial district, the 282,000ft² Port Hamilton has been the base for Scottish Widows, a subsidiary of LBG dealing in pensions, investments, and life insurance, for nearly three decades.
Drum will assume control of the property and spearhead the redevelopment as part of a forward funding agreement.
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By GlobalDataPort Hamilton will remain the head office for the pensions and investments business, with Drum finalising a pre-letting agreement with LBG for a 21-year lease after transformation works are completed in 2027.
The redevelopment is part of LBG’s initiative towards creating a more sustainable office footprint and a part of its net zero goal. This follows other eco-friendly initiatives, including the refurbishment of its Bristol office in 2022 and the relocation to Leeds’ energy-efficient office building last year.
Lloyds Banking Group chief people & places officer Sharon Doherty said: “We want to create a more modern and sustainable workspace in Edinburgh where our colleagues enjoy working so that we’re in the best place to serve our 27 million customers in more ways with the things that matter to them.”
LBG, claimed to be UK’s largest digital bank, employs around 10,000 individuals in Edinburgh in various roles.
HSBC Asset Management advised the building owners and helped conclude the agreements on the redevelopment project.
Knight Frank and CBRE acted as commercial property agents for Hamilton Prop Co and Lloyds Banking Group, respectively. Legal advice was provided by Morton Fraser and MacRoberts for Drum, Pinsent Masons for Lloyds Banking Group, and Brodies for Hamilton Prop Co.
Drum Property Group managing director Graeme Bone said: “The £200m redevelopment of Port Hamilton presents an exceptional opportunity for Lloyds Banking Group to upgrade and enhance one of Edinburgh’s landmark buildings and deliver an exceptional working environment for Lloyds colleagues in an unrivalled city centre location.”
“We are particularly proud of securing one of Edinburgh’s largest ever office pre-letting deals. The level of investment, structure and net-zero objectives of the Port Hamilton redevelopment sends out a very strong message for the future of the city centre office market. It also marks another exciting addition to our proven track record in delivering major office facilities for both corporate and government occupiers.”
