Hurstwood Holdings’ subsidiary AM Sci Tech on Thursday acquried Maybury Casino in Edinburgh, Scotland, for £2.9 million. The purchase price reflects a net initial yield of circa 15%.
The acquisition of the Art Deco leisure property represents a strategic addition to Hurstwood’s growing Scottish investment portfolio and strengthens its presence in the capital, following the group’s recent acquisition of 7 Lochside View at Edinburgh Park.
“The acquisition of this unique building is a fantastic addition to our growing Scottish portfolio,” Hurstwood Holding Executive Chairman Stephen Ashworth said in a statement. “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.”
The Maybury is 21,991 square feet over two floors and occupies a 1.4-acre site with 70 dedicated parking spaces. It features multiple gaming floors, bar and lounge areas, private function rooms and staff facilities. The interior combines a modern leisure fit with architectural elements reflective of its historical origins.
The property is fully let to Grosvenor Casino Limited, benefiting from fixed annual rental uplifts of 2.5% and about four years remaining on the lease.
The lease is further underpinned by a guarantee from Rank Group Gaming Division Limited. Grosvenor also has recently undertaken a program of external improvement works to the building.
Funding for the acquisition was provided by property lender Together, which has an £8.4billion loan book and provides finance for commercial mortgages and bridging loans.
“This was a fantastic result for all involved and we were pleased to be able to support Hurstwood with this acquisition,’ said Together CEO Mark Goldberg. “The Maybury combines exceptional architectural heritage with strong income characteristics.”
Gordon Pirie, fund manager of AM Sci Tech, added the acquisition is a rare opportunity for Hurstwood to acquire “one of Edinburgh’s most recognizable Art Deco buildings in one of the UK’s most dynamic and fastest-growing cities.”
The Maybury dates to 1935 when it was originally constructed as the Maybury Roadhouse and Diner. Designed by architects William Patterson and James Broom, the white-painted building is recognized as one of Edinburgh’s finest examples of Art Deco architecture, characterized by its black-framed windows and strong horizontal and vertical lines.
Originally conceived as a destination venue for the city’s growing car-owning population, it was converted into a casino in the late 1990s.
