The deal sees Drum take control of the eight storey Port Hamilton building in the heart of Edinburgh’s finance district which has been home to Scottish Widows for almost three decades.

Drum will then redevelop the 282,000 sq ft building as part of a forward funding agreement.

Port Hamilton will remain head office for the group’s pension and investments business, with Drum also concluding a pre-letting agreement with Lloyds which will see the firm enter a 21-year lease.

The redevelopment works are expected to be completed in 2027.

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“The £200m redevelopment of Port Hamilton presents an exceptional opportunity for Lloyds Banking Group to upgrade and enhance one of Edinburgh’s landmark buildings and deliver an exceptional working environment for Lloyds colleagues in an unrivalled city centre location,” said Graeme Bone, group managing director at Drum.

“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."

HSBC Asset Management advised the building owners on the transaction.

In concluding the Port Hamilton transaction, Knight Frank acted as commercial property agents for Hamilton Prop Co. Ltd. whilst CBRE acted for Lloyds Banking Group.

Drum’s legal advisors were Morton Fraser and MacRoberts, Pinset Masons represented Lloyds Banking Group and Brodies acted for Hamilton Prop Co. Ltd.