Lloyds’ Bank of Scotland has made an £88.9 mln (€102 mln) ‘green’ development loan for a large office project in Glasgow.
The four-year finance provides capital for HFD Property Group to complete 177 Bothwell Street, a circa 30,000 m2 office scheme where just over a third of the space is already pre-let to Clydesdale Bank on a 22-year lease.
Under the UK lending bank’s green initiative, HFD will receive a margin discount of up to 20 basis points if it delivers against a set of agreed green covenants.
These include achieving an A-rated Energy Performance Certificate, a BREEAM ‘Excellent’ rating and using 100 per cent renewable power, among others.
The building is also the first in Scotland to achieve platinum certification from WiredScore for IT connectivity and resilience.
Lloyds set up its green lending programme three years ago intending to lend at least £1 bn. This is Bank of Scotland’s second green loan for HFD, following circa £40 mln of debt for an EcoCampus for the University of West Scotland in Hamilton.
Alan Brennan, relationship director for Bank of Scotland Real Estate and Housing, said: 'Our latest green loan to the group will help unlock a scheme that will be at the forefront of the commercial real estate market in the city for years to come, while rewarding HFD for its proactive approach in reducing its carbon footprint.'