Virgin Money in St Andrew Square HQ jobs drive

VIRGIN Money yesterday confirmed its ambitions to build a major retail banking brand in the UK by announcing one of Edinburgh's most prestigious city centre addresses as its new headquarters.

The deal to move into 28 St Andrew Square - the former head office of both Scottish & Newcastle and Scottish Equitable - will spark the start of a recruitment drive to take on 300 staff to add to the 60 the company already employs in the city.

The agreement to lease 30,000sq ft of space in the Grade A listed building for more than 11 years is also a shot in the arm for Edinburgh's commercial property sector and is thought to be the biggest city centre office deal struck since 2009.

A spokesman for Virgin Money said the site, which will be leased from Heineken UK, was chosen because of its ease of transport access for staff and its proximity to the company's existing premises in Calton Road.

Refurbishment of the building will start in the next few weeks and it is expected to open in late summer. Most of the staff will be in administration and back office roles.

Jayne-Anne Gadhia, chief executive of Virgin Money, said she was "delighted" with the premises which are just yards away from her former workplace at Royal Bank of Scotland's historic offices in the same square.

"We are planning to grow significantly in 2011 and needed a central location with good transport links. St Andrew Square fits the bill perfectly and will support our long term plans," she said.

"Scotland has a solid reputation for financial services and has highly talented and skilled people to help us grow the Virgin Money business."

Virgin Money was established in 1995 as a joint venture between Virgin Group and Norwich Union, and also has offices in London, Norwich and Yeovil. The company is now 79 per cent owned by Virgin Group with the remainder held by US group WL Ross following a 100 million investment made in April last year. It currently has more than 2.5 million customers with products including credit cards, savings and investment accounts and insurance.

As part of its expansion it is planning to offer a full range of financial services including mortgages, investment services and a wider range of savings accounts.Earlier this month, the bank signalled its commitment to Edinburgh by securing the future of the prime showcase for Fringe acts with a 500,000 sponsorship deal for the "Fringe on the High Street" outdoor performances on the Royal Mile and the Mound precinct.

Tesco Bank, another rapidly growing player in retail banking, is also investing heavily in its operations in Scotland and recently acquired an office block in South Gyle from tycoon Sir David Murray for what it called "a second headquarters" building in the Scottish capital.

The firm already employs more than 1,000 staff in Scotland, split between Edinburgh and Glasgow offices, and expects to create a further 1,000 jobs during 2011.