Barclays has issued a £56m development finance package to HFD Group for its pre-let CityPark project in Aberdeen.
The facility will be used to build out a 215,000 sq ft office building in the Altens area of the city. The building has been let for 50 years to oil and gas company, Wood Group at a rent of £24.50/sq ft. The development will complete in the third quarter of 2015.
It will be one of the largest office developments in Aberdeen and a second phase of 100,000 sq ft, which the Barclays facility is not dedicated to, is currently going through planning.
The Aberdeen development market has been resilient throughout the downturn because of the booming energy sector with BP and Asco both close to agreeing major leasing deals in the city.
Barclays has been an active real estate lender in the Granite City in recent years having provided Drum Property Group with a £52m development loan for the development of its Prime Four business park in 2012, which it subsequently sold to F&C Reit.
Jamie Grant, head of corporate banking, central Scotland said: “Demand for office space in Aberdeen is still soaring and we expect this to continue for the foreseeable future, being met in the main by out of town developments. We are keen to continue to grow our presence in the north east of Scotland and this deal demonstrates our support for both the region and the oil and gas sector.”