Canada Life Asset Management has announced the acquisition of the ground lease of InterContinental Edinburgh – The George.

Operated by IHG under the InterContinental brand, the 240-bedroom upscale hotel is subject to a 161-year ground lease.

The hotel occupies a prominent position on the north side of George Street, adjacent to St Andrew Square, in the heart of the prime commercial, retail, and tourist district of Edinburgh’s historic Georgian New Town.

The Grade-A listed hotel, which first opened in 1860, is surrounded by leading occupiers including Harvey Nichols, Aberdeen, RBS, The Ivy, Dishoom and Malmaison.

David Thomson at Canada Life Asset Management led on the transaction.

Robin James, Head of UK Property, Canada Life Asset Management, said: “We are delighted to have acquired this prime asset that is closely aligned to our objective of acquiring high quality real estate-backed investments.

“Edinburgh welcomed over 5 million overnight visitors last year, reaffirming its position as one of the UK’s leading tourism destinations. The George enjoys a prime position in the heart of the city, ideally placed to capture both business and leisure demand.

“This acquisition represents a compelling opportunity to secure long-dated, cashflows that are well matched to Canada Life’s annuity liabilities.”