Scottish commercial property investor HFD Property Group has agreed terms with HSBC UK to refinance its flagship 177 Bothwell Street development in Glasgow.
The ‘Green Loan’ facility, providing funding in excess of £100m, requires the new office block to continue to meet a range of sustainability metrics.
The development has already committed to achieving an Energy Performance Certificate (EPC) A score of less than eight – 45% more energy efficient than a standard A-rated building – and BREEAM ‘Excellent’ standard.
Smart technology will be used throughout 177 Bothwell Street to reduce energy consumption and improve environmental performance, while the building’s energy will be supplied by Blantyre Muir Wind Farm in South Lanarkshire.
It will also feature a rooftop terrace and running track, 318 cycle spaces, electric vehicle charging points, and touchless technology throughout the building. An independent economic impact assessment concluded that the 313,000 sq ft development could generate £2.8bn of Gross Value Added (GVA) to the Scottish economy over 25 years.
Occupiers include Virgin Money, BNP Paribas, AECOM, CBRE and Transport Scotland, while HFD’s flexible serviced offices business will operate from dedicated space within the building.
Stephen Lewis, managing director of HFD Property Group, said: “177 Bothwell Street is an exceptional asset and, with our initial development funding package set to expire, we took the opportunity to find partners who could fund the development’s next stage.
“Given the property’s quality and sustainability credentials, interest was strong among the potential funders we spoke to, but after going through a competitive process, HSBC UK provided the most compelling terms, which include the correct balance between long-term funding and flexibility, all at an commercially attractive rate.”
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