Lloyds Banking Group is set to splash out on a £200m redesign of its base in Edinburgh in what will be one of the city’s largest ever prelets.
The redevelopment, led by development manager Drum Property Group, will see the transformation of the eight-storey, 282,000 sq ft Port Hamilton building, owned by Hamilton Prop Co, and home to Lloyds’ Scottish Widows life insurance and pensions subsidiary.
Drum will assume control of the property and take responsibility for its redevelopment as part of a forward funding agreement, while the building remains the head office for Lloyds’ pensions and investments business. The company has committed to a 21-year lease after the works are completed in 2027.
The move, part of a wider drive towards sustainability, follows Lloyds’ refurbishment of its Bristol office in 2022 and a move to a more sustainable building at 11 & 12 Wellington Place in Leeds last year.
Sharon Doherty, chief people & places officer at Lloyds Banking Group, said: “We want to create a more modern and sustainable workspace in Edinburgh where our colleagues enjoy working so that we are in the best place to serve our 27m customers in more ways with the things that matter to them.”
The company employs around 10,000 people in Edinburgh across various parts of the company, including customer-facing, finance and technology roles.
HSBC asset management advised the building owners on the deal, Knight Frank acted as their agents and Brodies as their lawyers; CBRE acted as agents for Lloyds Banking Group and Pinsent Masons acted as their lawyers; Drum’s legal advisors were Morton Fraser MacRoberts.
Image © MLA Architects
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