Tasty offers invited for Johnnie Walker’s Edinburgh home

Parabola has picked JLL to find a new owner for its Johnnie Walker building at 146 Princes Street in Edinburgh. Offers over £31.5m are sought, reflecting a net initial yield of 5.5% and a projected reversionary yield of 6.38% in August 2029. According to EG Radius, Parabola bought the building in 2017 for £17.5m. The 74,895 sq ft property comprises a grade-B listed former bank and department store building which has been transformed into an entertainment venue for Scotch whisky brand Johnnie Walker. Diageo Scotland holds a 25-year lease on the building, expiring in August 2044. It pays £1.9m a year in rent, with upwards-only reviews every five years, capped at 3.5%. Diageo’s other brands include Guinness and Smirnoff. Its Scotland division reported a turnover of £2.6bn last year with a pretax profit of £960m. Since opening in September 2021, the Johnnie Walker Princes Street venue has welcomed more than 1m visitors from 141 countries. The building was also upgraded to feature outstanding ESG credentials, including BREEAM Excellent, LEED Platinum and EPC B ratings. Calum Cowe, director at JLL, said: “The sale represents a unique opportunity to acquire an iconic Edinburgh property with 20 years of secured, RPI-linked income to an investment-grade covenant. “The city’s appeal as a domestic and global tourist destination continues to grow, which, alongside the strength of the Johnnie Walker brand, will only strengthen the future performance of the asset.” Photo from JLL See which agents are doing the most deals in Edinburgh >>