THE iconic Edinburgh building which houses Diageo's Johnnie Walker experience is for sale, seeking offers of more than £31.58 million.
The news comes as the experience, which operates in the building, celebrates a major milestone this week. The venue has welcomed over 1 million visitors from 141 countries just three years since opening its doors.
The property is let to Diageo Scotland on a 25-year lease, expiring in August 2044, at a current annual rent of £1.85m.
Property consultancy JLL said it has been instructed to seek offers in the region of more than £31.58m for the building in Edinburgh’s west end “subject to contract and exclusive of VAT.”
JLL said Johnnie Walker Princes Street is the centrepiece of Diageo’s £185m investment in whisky tourism in Scotland.
“Situated in a landmark corner position at the junction of Princes Street and Edinburgh’s traditional West End, with stunning views overlooking Edinburgh Castle,” said JLL.
“The property is an iconic former bank and department store, extending across an internal area of 74,895 sq ft.”
JLL said 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.”
JLL described the purchase as a “unique opportunity” to acquire the building that houses the multi award-winning, flagship visitor experience.
It said: “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.
“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.
“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.”
