LISMORE Real Estate Advisors has advised on the £23.4 million acquisition of Hanover Buildings at 66-84 Rose Street in Edinburgh, on behalf of Lothian Pension Fund from Oval Real Estate.
The hotel-anchored mixed-use asset comprises a 145-bedroom hotel, which is let to Hub by Premier Inn and five retail and leisure units, let to Lucy & Yak, William Hill, Cotswold Outdoor, Assaggini, and Veeno. The hotel is secured on a long index-linked lease and accounts for approximately 70% of the scheme’s overall income.
Colin Finlayson, director of Lismore Real Estate Advisors, said, “Investor demand for hotels across the UK remains particularly strong and this is increasingly evident in Edinburgh, where global tourism and business travel continue to underpin robust occupancy levels. With supply relatively constrained, well-located, income-secure assets such as Hanover Buildings are attracting significant interest and offering compelling long-term returns for our client.”
Nicola Barrett, portfolio manager of Lothian Pension Fund, added, “Hanover Buildings is a high-quality, income-producing asset in a prime city-centre location. The strength of the hotel covenant, combined with diversified retail and leisure income, aligns well with our strategy of securing resilient, long-term real estate investments that deliver stable returns for Lothian Pension Fund.”
Elliot Cassels, director at Westwood Real Estate, commented, “The property generated interest from UK funds and overseas buyers who were attracted to the long index-linked hotel lease, and the vibrancy of the ground floor retail and leisure mix, where tenant and investor demand has rebounded in recent years.”
