£88.9m loan deal agreed for Glasgow’s biggest office development
HFD Property Group has secured an £88.9 million development loan to progress its Bothwell Exchange office project in Glasgow.
The four-year package from the Bank of Scotland real estate and housing team’s Green Lending Initiative provides the commercial property specialist with the development capital to complete the 313,116 sq ft commercial accommodation at 177 Bothwell Street.
Forming the final part of its Bothwell Exchange office campus, the project will be the largest multi-occupancy office building in Glasgow once complete.
The building will boast Scotland’s first office rooftop running track, which will be 150m, extensive external roof terrace and charging points for electric vehicles.
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.”
Clydesdale Bank has signed a 22-year lease for over 116,000 sq ft at 177 Bothwell Street, while HFD’s managed office division will also lease over 60,000 sq ft of the development.
The deal follows several financial arrangements from the Bank of Scotland to HFD for successful developments, including the neighbouring 122 Waterloo Street building 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.
Alan Brennan, relationship director for Bank of Scotland real estate and housing, said: “Having worked with HFD for a number of years now, we’ve witnessed first-hand their commitment to both Scottish business and the environment.
“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.”