The owners of waterfront office block Dundee One has received bank support as it looks to help tenants through the coronavirus crisis.
Jute Properties purchased Dundee One in 2017 and subsequently developed the building to create a mix of fully furnished offices, meeting rooms and, most recently, a high-grade shared working space on the top floor.
The offices are home to 25 firms, many of them small businesses who have experienced dramatic falls in revenue.
Recognising the difficulties being faced by its tenants and the effect of temporary rent arrears on its own cashflow, the management team at Jute Properties approached Bank of Scotland for support.
Within three days, the firm secured a capital repayment holiday on existing borrowing. This will strengthen its working capital to be able to agree short-term rent deferrals for its tenants.
Jonathan Marsh, managing director at Jute Properties, said: “No one could foresee these circumstances when we bought Jute Properties, but thanks to support from Bank of Scotland, we’ve been able to protect our business and offer help to our tenants.
“Some of them are experiencing huge dips in income as demand for their services slows or stops altogether.
“We felt it was the right thing to do to agree a pause in rent payments for those who needed it most – it will give them the financial flexibility needed to make their way through the coming months and emerge at the other side, stronger.
“The quick turnaround by Bank of Scotland has made all the difference to us and our community of tenants.
“We’re confident that, once normal trading commences again, we’ll be ready to put our investment plans back into action.”
Bank of Scotland has allocated £2 billion of finance to help firms affected by the Covid-19 outbreak.
Douglas Spowart, relationship director at Bank of Scotland, said: “We’re committed to helping businesses like Jute Properties adapt and adjust to weather the storm.”
rmclaren@thecourier.co.uk