FINANCE: Barclays has provided Glasgow-based developer HFD Group with £56m of development finance to fund the CityPark office development in Aberdeen.
In its first move from its central Scottish heartland into the north east, HFD is developing a circa 215,000 sq ft office scheme on a 6.5-acre site on the outskirts of the city.
The Barclays funding will support phase one of the CityPark project, with CityPark 2, a second 100,000 sq ft office development, currently going through the planning process.
The scheme, located in the Altens district, is set to be completed in Q3 2015. It will be occupied by Wood Group PSN, the largest provider of brownfield services in the oil and gas industry.
Jamie Grant, Barclays head of corporate banking, central Scotland, led the deal. He said: “We have a strong appetite to lend to ambitious businesses with clear strategic aims, and our experienced real estate team has worked closely with HFD Group to secure the required funding for this significant project.
“Demand for office space in Aberdeen is still soaring and we expect this to continue for the foreseeable future, being met in the main by out-of-town developments. We are keen to continue to grow our presence in the north east of Scotland and this deal demonstrates our support for both the region and the oil and gas sector.”
Stephen Lewis, managing director of HFD Property Group, said “Property transactions are so often more than the property itself but are driven by the people, professionalism and passion for a project.
“We have been delighted that Barclays shares HFD’s approach to project delivery and we have been impressed by the speed and efficiency that the Barclays team have delivered, more so when you consider that CityPark 1 represents the first funding deal HFD has completed with Barclays.”
bridget.o’connell@estatesgazette.com
