Lloyds Banking Group has announced ambitious plans to transform its Port Hamilton building in Edinburgh into a state-of-the-art innovation hub, with a £200m redevelopment project led by Drum Property Group.
The redevelopment, one of the largest pre-letting deals in Edinburgh’s history, will see the eight-storey, 282,000 sq ft building become Lloyds’ main Scottish base upon completion in 2027. The building has housed Scottish Widows for nearly three decades and will continue to serve as the headquarters for the pensions and investment arm.
Innovation Hub for Scotland
Speaking to Insider, Chira Barua, CEO of Scottish Widows, expressed enthusiasm for the project, highlighting its alignment with Scotland’s thriving fintech sector. “The fintech scene in Scotland is buzzing, and we’re committed to staying right in the centre of it,” she said. “We’ve made huge progress in connecting customers with their financial futures, and we’re starting to see how powerful digital engagement and gamification will be in the future.”
Sharon Doherty, Chief People and Places Officer at Lloyds Banking Group, also spoke to Insider about the group’s vision for the project. “We want to create a more modern and sustainable workspace in Edinburgh where our colleagues enjoy working, so we’re in the best place to serve our 27 million customers in more ways with the things that matter to them,” she said.
Sustainability at the Core
The redevelopment of Port Hamilton is part of Lloyds’ broader strategy to reduce its environmental impact and modernise its office footprint. The group has already refurbished its Bristol office and relocated to more energy-efficient buildings in Leeds as part of these efforts.
Graeme Bone, Managing Director at Drum Property Group, told Insider: “The level of investment, structure, and net zero objectives of the Port Hamilton redevelopment sends out a very strong message for the future of the city centre office market. It also marks another exciting addition to our proven track record in delivering major office facilities for both corporate and government occupiers.”
Key Project Details
Under a forward funding agreement, Drum Property Group will take responsibility for redeveloping the property. Lloyds Banking Group has signed a pre-letting agreement for a 21-year lease, ensuring Port Hamilton remains a cornerstone of its Scottish operations.
The redevelopment will include cutting-edge facilities designed to accommodate roles across customer service, technology, finance, and cybersecurity. Lloyds Banking Group employs around 10,000 people in Edinburgh, making the city a vital part of its UK operations.
A Bright Future for Edinburgh’s Office Market
The project is seen as a significant boost for Edinburgh’s city centre and its office market, particularly in light of the challenges faced by the sector in recent years.
HSBC Asset Management advised the building’s owners, while Knight Frank acted as commercial property agents for Hamilton Prop Co. CBRE represented Lloyds Banking Group, with legal support from Morton Fraser, MacRoberts, Pinsent Masons, and Brodies.
The redevelopment is set to redefine the Port Hamilton site, ensuring it meets the demands of a modern workforce while reinforcing Edinburgh’s status as a key player in the global financial and fintech sectors.
