Johnnie Walker - Princes Street, Edinburgh_Property for Sale

145 Princes Street, Edinburgh, EH2 4BL, UK

Johnnie Walker - Princes Street, Edinburgh

Asset Description

Edinburgh is a capital city, UNESCO World Heritage site and leading European and global tourist centre.
The city receives 4.9 million tourist visits annually and is the most popular visitor destination in the UK, outside of London.
Its Primary Retail Market is estimated to reach 943,000 people, with a total retail spend of £6.35 billion per annum.
Edinburgh is home to Scotland’s busiest airport, serving 14.4 million passengers in 2023, with two arterial train stations, and a developing tram network.
Johnnie Walker Princes Street forms the centrepiece of Diageo’s £185 million investment in Whisky tourism in Scotland, having welcomed more than 1 million visitors since opening in 2021.
Situated in a landmark corner position at the junction of Princes Street and Edinburgh’s traditional West End, with stunning views overlooking Edinburgh Castle.
The property is an iconic former bank and department store, extending to a gross internal area of 74,895 sq ft.

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Attributes

Asking price

IDR 637,001,431,000

Investment strategy

Core

Remaining lease term

19.9 years

Occupancy

100%

BREEAM

Excellent

LEED

Platinum

Media

Investment Highlights

Unique opportunity to acquire the multi award-winning, flagship visitor experience for the world’s largest selling Scotch Whisky brand.
More Scotch whisky is enjoyed globally than American, Japanese and Irish whiskies combined and Scotch whisky visitor centres are collectively the most popular tourist attraction in Scotland.
The property is let to Diageo Scotland Limited on a 25-year FRI lease, expiring 6th August 2044 (19.9 years UXT) at a current passing rent of £1,854,183 per annum.
Diageo is a global leader in premium drinks, with over 200 brands including Johnnie Walker, Guinness, Smirnoff, Tanqueray and Baileys sold across 180 countries worldwide.
5 yearly upwards only rent reviews in line with the Retail Prices Index (RPI), capped at 3.5% per annum, compounded annually, with the next review being 7th August 2029.
Diageo Scotland Limited reported 2023 FY turnover of £2.6 billion, pre-tax profits of £960 million and shareholder’s funds of £3.97 billion.
Heritable Tenure (Scottish Equivalent of English Freehold).
Excellent ESG credentials include BREEAM ‘Excellent’, LEED ‘Platinum’, and EPC ‘B’ rating.

We are instructed to seek offers in excess of £31,580,000 (Thirty One Million, Five Hundred and Eighty Thousand Pounds Sterling) subject to contract and exclusive of VAT.

A purchase at this level would reflect a net initial yield of 5.50% and a projected reversionary yield of 6.38% in August 2029, based on Oxford Economics Forecasts, allowing for standard purchaser’s costs based on LBTT.