The 282,000 sq ft Port Hamilton building in the city centre has been home to Lloyds subsidiary Scottish Widows for almost 30 years and will become Lloyds Banking Group’s main base in Scotland following completion of the works in 2027.
Under the deal, Drum will assume control of the building and take responsibility for the redevelopment as part of a forward funding agreement with the client.
Drum has also concluded a pre-letting agreement with Lloyds Banking Group which will see the firm enter a 21-year lease after completion of the project.
Graeme Bone, group managing director for Drum Property Group, said: “The £200m redevelopment of Port Hamilton presents an exceptional opportunity for Lloyds Banking Group to upgrade and enhance one of Edinburgh’s landmark buildings and deliver an exceptional working environment for Lloyds colleagues in an unrivalled city centre location.
“We are particularly proud of securing one of Edinburgh’s largest ever office pre-letting deals. The level of investment, structure and net-zero objectives of the Port Hamilton redevelopment sends out a very strong message for the future of the city centre office market. It also marks another exciting addition to our proven track record in delivering major office facilities for both corporate and government occupiers."
Lloyds Banking Group employs around 10,000 people in Edinburgh across a range of different parts of the company from customer-facing roles to software engineering and cyber security.
The Port Hamilton redevelopment follows the full refurbishment of Lloyds’ Bristol office in 2022 and a move to new energy-efficient offices in Leeds last year.
Chira Barua, CEO of Scottish Widows, said: “The fintech scene in Scotland is buzzing and we’re committed to staying right in the centre of it. We’ve made huge progress in connecting customers with their financial futures and we’re starting to see how powerful digital engagement and gamification will be in the future. There’s huge potential to help make a real difference for our customers’ lives and we’re right out in front building all the parts we need to innovate in a massive way.”
Sharon Doherty, Chief People & Places Officer, Lloyds Banking Group, said: “We want to create a more modern and sustainable workspace in Edinburgh where our colleagues enjoy working so that we’re in the best place to serve our 27 million customers in more ways with the things that matter to them.”
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