Key Points
- HSBC UK has provided a £135 million green loan facility to support the £200 million redevelopment of Port Hamilton, a landmark office building in Edinburgh’s financial district.
- The project is led by Drum Property Group, transforming the 282,000 sq ft building into a cutting-edge, sustainable workplace targeting EPC A rating and BREEAM Excellent certification.
- Lloyds Banking Group, owner of Bank of Scotland, has secured a 21-year pre-let lease for the redeveloped space, marking one of Edinburgh’s largest ever office pre-letting deals, with completion expected by the end of 2027.
- The building, previously home to Scottish Widows for nearly 30 years, features a distinctive curved roof and is located on Morrison Street.
- HSBC’s financing involves collaboration across its Asset Management, Private Bank, and Real Estate Finance teams, with legal advice from CMS.
- The redevelopment aligns with net zero goals, minimising embodied carbon and setting a sustainability benchmark for Edinburgh’s office market.
- Architects Michael Laird Architects are involved in the redesign to create Lloyds Banking Group’s Scottish HQ and enhance Edinburgh’s fintech status.
- Transaction advisors included Knight Frank and CBRE for commercial agents, with legal teams from Morton Fraser, MacRoberts, Pinsent Masons, and Brodies.
- Statements from HSBC executives Tim Williams and Siobhan Gall highlight the project’s environmental and collaborative value.
- Drum Property Group’s Graeme Bone praised the deal’s scale and net zero focus as a signal for Edinburgh’s city centre office future.
- Lloyds and Scottish Widows leaders, including Sharon Doherty and Chira Barua, emphasised modern workspaces and Scotland’s fintech growth.
Edinburgh (Edinburgh Daily News) February 21, 2026 – HSBC UK has extended a £135 million green loan to fund the ambitious £200 million redevelopment of Port Hamilton, transforming the iconic Edinburgh office building into a sustainable hub for Lloyds Banking Group.
What Is the Port Hamilton Redevelopment Project?
The Port Hamilton building on Morrison Street, a prominent feature in Edinburgh’s financial district with its distinctive curved roof, is undergoing a comprehensive overhaul. Previously occupied by Scottish Widows for almost 30 years, the eight-storey, 282,000 sq ft premises will become Lloyds Banking Group’s primary Scottish headquarters upon completion in late 2027. Drum Property Group is spearheading the works under an innovative forward funding agreement, assuming control from Hamilton Prop Co. Ltd. to deliver modern office space.
As reported by staff writers at Scottish Financial News, the project will refurbish the building to the highest sustainability standards, achieving at least an EPC A rating and BREEAM Excellent certification. This green loan from HSBC underscores the financial sector’s commitment to low-carbon transformations.
The redevelopment forms part of Lloyds Banking Group’s broader UK strategy to modernise its office portfolio, following similar upgrades in Bristol in 2022 and Leeds last year.
Why Did HSBC Provide a Green Loan?
HSBC structured the £135 million as a dedicated Green Loan facility, aligning with its net zero ambitions and supporting projects that minimise environmental impact. The financing was coordinated through HSBC’s Asset Management, Private Bank, and Real Estate Finance teams, demonstrating integrated expertise.
As reported by Scottish Construction Now, Tim Williams, head of real estate investment at HSBC Asset Management, stated:
“We were delighted to conclude this finance facility as part of a wider project to transform this landmark building. The redevelopment will deliver the highest sustainability standards, minimise embodied carbon, and create an exceptional workplace.”
Siobhan Gall, regional head of HSBC UK Real Estate Finance, added:
“We are delighted to support the redevelopment of this prime office scheme in Edinburgh, which is anticipated to set a new benchmark for sustainability in the market. This complex financing transaction was successfully delivered as a result of close collaboration between all parties involved, providing an excellent example of the value HSBC can bring to its clients, by leveraging its global network.”
Legal counsel to HSBC was provided by international law firm CMS.
Who Are the Key Players Involved?
Drum Property Group leads the consortium, with Graeme Bone, group managing director, highlighting the project’s significance. As quoted in Urban Realm, Graeme Bone 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. 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.”
In Projects Cot, Bone further noted:
“We are particularly proud of securing one of Edinburgh’s largest ever office pre-letting deals. 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, encompassing Bank of Scotland, Halifax, and others, will occupy the space via a 21-year lease—one of the largest pre-lets in Edinburgh’s history. Sharon Doherty, chief people & places officer at Lloyds Banking Group, remarked:
“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.”
Chira Barua, CEO of Scottish Widows, commented in multiple outlets:
“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.”
Transaction advisors included Knight Frank for Hamilton Prop Co. Ltd., CBRE for Lloyds, and legal firms Morton Fraser, MacRoberts for Drum, Pinsent Masons for Lloyds, and Brodies for the owners.
What Sustainability Features Are Planned?
The refurbishment prioritises environmental excellence, targeting top-tier EPC and BREEAM ratings while reducing embodied carbon. This positions Port Hamilton as a benchmark for green offices in Edinburgh.
As per Scottish Financial News coverage, the works will create a low-carbon workspace amid rising demand for sustainable commercial properties. The project supports Lloyds’ net zero targets and HSBC’s green financing initiatives.
When Will the Redevelopment Complete?
Completion is slated for the end of 2027, with Lloyds moving into the transformed space under its long-term lease. Initial redevelopment plans were unveiled in January 2025, with HSBC’s loan announced on 18 February 2026.
How Does This Impact Edinburgh’s Office Market?
This deal signals confidence in Edinburgh’s city centre offices, countering hybrid work trends with premium, sustainable spaces. It bolsters the fintech ecosystem, as noted by Chira Barua, and reinforces the area’s status as a financial hub.
Graeme Bone’s statements emphasise the investment’s role in future-proofing the market. Public reactions, such as comments in Urban Realm, range from praise for the building’s enduring quality to critiques of financial sector expansions.
What Is the Broader Context for Green Financing?
HSBC’s green loans, like this one, form part of its climate strategy, funding transitions to sustainable practices. Similar facilities have supported projects such as Hamilton Waste & Recycling’s equipment upgrade, though unrelated to this site.
This transaction exemplifies cross-team collaboration and global leverage, as per Siobhan Gall. For Edinburgh, it aligns with ongoing revitalisation efforts in commercial real estate.
