BoS and Scottish Widows back property developer with £54m funding deal

Bank of Scotland (BoS) in partnership with Scottish Widows has provided a new £54 million, 10-year funding package for HFD Property Group, the developer behind an Aberdeen office complex named after oil mogul Sir Ian Wood.

HFD Property Group, a division of Lanarkshire-based commercial property firm HDF Group, said the new arrangements involved a change of lender.

A spokeswoman for the company rebuffed speculation the move was prompted by a failed attempt to sell the property, Sir Ian Wood House in the 15-acre CityPark development at Altens in the Granite City.

The firm insisted that there were no such talks held.

But it is thought there was strong interest from UK and international investors seeking secure, long-term income from the Grade A office space.

Wood Group occupies the 216,000sq ft complex on a 15-year lease, it emerged yesterday.

The energy-service firm celebrated the official opening of the Hareness Road building in the company of Sir Ian, its former chairman, in April.

The property, originally called CityPark1, was developed as Wood Group’s main site on the south side of Aberdeen.

Operations in Dyce and corporate headquarters in Justice Mill Lane complete the firm’s footprint in Europe’s energy capital.

Stephen Lewis, managing director for the developer, added: “This new longer term funding agreement provides us, while we remain owner, with certainty of funding over an extended period for this landmark new development within the HFD portfolio.

“Sir Ian Wood House and the wider CityPark business park are an important part of Aberdeen’s future and we’re proud to have delivered this first phase of the scheme.

“We look forward to delivering further phases of high quality, highly sustainable and cost-effective properties and remaining a stakeholder in the city’s continued success.”

BoS commercial property team relationship director Alan Brennan said: “The energy sector remains a cornerstone of the economy in Aberdeen. We are committed to playing a role in supporting the quality real estate assets the city needs.”