Johnnie Walker - Princes Street, Edinburgh_Property for Sale
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.
...

Attributes

Asking price
£31,580,000
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.

Johnnie Walker - Princes Street, Edinburgh 4_Property for Sale
Johnnie Walker - Princes Street, Edinburgh 4_Property for Sale

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Johnnie Walker - Princes Street, Edinburgh (0 Properties)

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Last updated
25 Nov 2024