Occupied by Bank of Scotland-owner Lloyds Banking Group, the building will be refurbished to the highest sustainability standards, targeting minimum EPC A and BREEAM Excellent ratings, and HSBC’s financing will be provided as a Green Loan facility.

The £200m redevelopment will be spearheaded by Drum Property Group and will deliver 282,000 sq ft of modern office space. The new tenants will take a new 21-year lease when redevelopment completes towards the end of 2027, which represents one of the largest pre-let agreements ever secured in Edinburgh’s commercial real estate market.

The transaction was delivered through collaboration between HSBC’s Asset Management, Private Bank and Real Estate Finance teams with legal counsel provided to HSBC by international law firm CMS.

Tim Williams, head of real estate investment at HSBC Asset Management, said: “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, 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.”