Tigerlily earns stripes as new landlord snaps it up for a cool £9m

A BUILDING that plays host to one of Edinburgh's trendiest bars and hottest nightclubs has changed hands in a £9.6 million property investment deal. The Tigerlily venue in fashionable George Street is also home to an award-winning boutique hotel, with 33 rooms, and the Lulu club at basement level.

The entire property is let to the brewing and pubs operator Belhaven until 2030 and sub-let to Montpeliers, the Edinburgh-based group behind a string of watering holes and restaurants, including Rick's and the Opal Lounge.

Property agent Montagu Evans said the building had been bought by its client, Lothbury Property Trust, which is based in Dublin, from vendor Alliance Trust Real Estate Partners, a part of the Dundee-based FTSE-100 investment group.

The price tag reflects a net yield of just over 5.4 per cent.

Ross Burnett, of Montagu Evans, said: "This is a prime, well-let commercial property investment in an excellent location at the heart of Edinburgh's city centre. The asset meets Lothbury Property Trust's current investment criteria, and I am sure it will continue to perform well under new ownership."

Alliance Trust was represented by Jones Lang LaSalle, whose Colin Finlayson added: "This sale reflects the continuing strong demand for well-let prime properties. Strong interest was received from both UK and overseas investors."

In 2008, Tigerlily won Scotland's "sexiest place to stay" at the Scottish Hotels of the Year Awards.