HSBC Securities has taken a 16,000 sq ft assignation of broadband provider Telewest’s lease at 2 Lochside Way in west Edinburgh.
The bank is expanding out of its existing operation at 1 Lochside Way, where it has 25,000 sq ft, onto the second floor of the development at Edinburgh Park.
The lease agreement between Telewest and the owner, Morley Fund Management, has eight years remaining at £20 per sq ft.
HSBC will adopt that lease arrangement, but is understood to have negotiated an effective 18-month rent free period. The bank has also received a £1m Regional Selective Assistance grant from the Scottish Executive to aid its expansion.
A source close to the deal said: “What Edinburgh has lacked in the last two years is an expansion of its financial services base. Glasgow has seen plenty, but Edinburgh has more front-line type operations, rather than back-office, so that deal is brilliant news.”
DTZ acted for both HSBC and the assignor.
References: EGi News 12/10/06
