HBOS Moves to Lochrin Square in Edinburgh's Biggest Office Deal Since 2003
18th December 2007
Announcing Edinburgh’s biggest office deal this year, Ryden, on behalf of clients Gladedale Capitaland Scotmid, has confirmed that banking giant HBOS has signed up to take all five floors at No.1 Lochrin Square, the landmark £50 million complex in the city’s Fountainbridge area.
HBOS’s corporate banking division will consolidate its operations in the city to occupy all 62,000 sq ft. The deal sets a headline rent of £28.50 per sq ft and cements Edinburgh's prime office rental levels during 2007.
This massive deal at Lochrin Square is the largest of its kind in the capital in recent years and represents a huge success for developer, Gladedale, which speculatively built the development. 94% of the whole development is now let, within a month of practical completion.
18,235 sq ft at No.2 Lochrin Square was let to Biggart Baillie earlier this year. Watson Wyatt also confirmed a lease on 7,150 sq ft. Peter I'Anson, partner at Ryden, has been involved at Lochrin Square since project inception and has handled both transactions. He said: "This letting gives the market a real boost, especially at a time when there has been so much negative press about the credit squeeze. Quarter of 2007 has turned out to be one of the busiest periods in the Edinburgh office market and is a rewarding way to finish the year.”
Edinburgh faces a lack of Grade A product available for occupation during 2008, meaning big-name occupiers will have to put off relocation or expansion plans hinging on finding the right property until the development pipeline catches up in 2009.
The city has two speculative office developments underway; Kenmore’s 94,000 sq ft West Port House is now on-site, and Springside, a joint venture between AMA/Grosvenor and the Royal Bank of Scotland to develop 59,000 sq ft. Construction is planned to start in April 2008.
Peter I’Anson acts for both West Port and Springside and is actively looking for tenants for both. He said: “Both prime office developments will become available during 2009, providing an ideal opportunity for occupiers to enter into pre-letting discussions with us.”
Ryden acts jointly on Lochrin Square with DTZ. King Sturge acted for HBOS.
-ends-
