Hurstwood Holdings subsidiary AM Sci Tech has completed the acquisition of The Maybury Casino in west Edinburgh for £2.9 million.

The acquisition of the landmark Art Deco property represents a strategic addition to Hurstwood’s growing Scottish investment portfolio and further strengthens its presence in the capital city, following the group’s recent acquisition of 7 Lochside View at nearby Edinburgh Park.

The purchase price reflects a net initial yield of circa 15%.

Hurstwood Holdings executive chairman Stephen Ashworth said: “The acquisition of this unique building is a fantastic addition to our growing Scottish portfolio.

“The Maybury is a prominent and iconic Edinburgh landmark, let to a strong covenant and situated within an established and expanding residential catchment.

“Opportunities to acquire assets of this quality and character are rare and we are delighted to have secured the property. My personal thanks go to all those involved in the transaction.”

The Maybury extends to 21,991 sq ft over two floors and occupies a prominent 1.39-acre site with 70 dedicated car parking spaces.

It features multiple gambling floors, bar and lounge areas, private function rooms and staff facilities.

The property is fully let to Grosvenor Casino Limited, benefiting from fixed annual rental uplifts of 2.5% and approximately four years remaining on the lease.

The lease is further underpinned by a guarantee from Rank Group Gaming Division Limited. Grosvenor has also recently undertaken a programme of external improvement works to the building.

Funding for the acquisition was provided by property lender Together, which has an £8.4 billion loan book and provides finance such as commercial mortgages and bridging loans.

Marc Goldberg, CEO of group sales and distribution at Together, said: “This was a fantastic result for all involved and we were pleased to be able to support Hurstwood with this acquisition.

“The Maybury combines exceptional architectural heritage with strong income characteristics.”

Gordon Pirie, fund manager of AM Sci Tech, said: “This represented a rare opportunity for Hurstwood to acquire one of Edinburgh’s most recognisable Art Deco buildings in one of the UK’s most dynamic and fastest-growing cities.”

The history of The Maybury dates back to 1935 when it was originally constructed as the Maybury Roadhouse and Diner.

Designed by architects William Patterson and James Broom, the striking, white-painted building is recognised as one of Edinburgh’s finest examples of Art Deco architecture.

The property occupies a prominent position in west Edinburgh adjacent to the A8 Glasgow Road, one of Edinburgh’s principal arterial routes, providing direct access to the city centre, Edinburgh Airport and the M8 and M9 motorway networks.