Property consultancy JLL said it has been instructed to seek offers in excess of £31.58 million for the building that houses the Johnnie Walker Princes Street building in Edinburgh’s west end “subject to contract and exclusive of VAT.”

The bulding is owned by Edinburgh property investor Parabola.

JLL said Johnnie Walker Princes Street forms the cornerstone of Diageo’s £185 million investment in whisky tourism in Scotland, having welcomed more than one million visitors since opening.

The property is let to Diageo Scotland Limited on a 25-year FRI lease, expiring August 6, 2044, at a current passing rent of £1.854 million per annum.

“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 to agross 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 any potential deal as a “unique opportunity” to acquire the building that houses 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 … ” said JLL.

“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.”