HFD refinances flagship Glasgow development

HFD Property Group has announced it has agreed terms with HSBC UK to refinance its 177 Bothwell Street office development in Glasgow.

The ‘Green Loan’ facility, providing funding in excess of £100 million, requires the building to continue to meet a range of sustainability metrics. The development has 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 through a range of measures.

Smart technology will be used to reduce energy consumption and improve environmental performance, while the building’s energy will be supplied by Blantyre Muir Wind Farm in South Lanarkshire, ensuring it 100% renewable and from an identified and local source.

177 Bothwell Street will also feature a rooftop terrace and running track, 318 cycle spaces, electric vehicle charging points, and touchless technology throughout the building.

The development is described as the first Scottish property to commit to attaining the new SmartScore accreditation for smart buildings and has already achieved a ‘Platinum’ WiredScore certification, recognising that future occupiers will have the best connectivity available.

177 Bothwell Street’s occupiers include Virgin Money, BNP Paribas, AECOM, CBRE, and Transport Scotland, while HFD’s flexible serviced offices business, HFD Offices, will operate within the building.

Stephen Lewis, MD 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.

“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. We look forward to taking 177 Bothwell Street to the next stage of its development with HSBC UK, with the building almost fully let.”

Emma Harlow, relationship director at HSBC UK, commented, “We’re thrilled to support HFD Property Group’s new venture at 177 Bothwell Street. It’s exciting to see our green loan used for a highly sustainable development, which not only uses sustainable materials but also renewable energy and smart technology too.

“HSBC UK has pledged to achieve net zero from our financed portfolio by 2050 and we’re committed to working with all our clients to help them on their journey to net zero.”