UK: S&N sells HQ freehold
Scottish & Newcastle has confirmed that it has sold the freehold on its headquarters in Edinburgh.
The brewer said today (11 June) that it sold the freehold on 28, St Andrew Square earlier this month to investment group Foreign & Colonial for GBP24m (US$47.2m). S&N said it will lease back the property and sublet some of the offices in the building.
Speaking to just-drinks, a spokesperson for S&N confirmed the sale, adding that the leaseback arrangement will run for 15 years. "It's a good deal for our shareholders," the spokesperson said.
"We are a branded beer business, not a property business," the spokesperson added.
S&N moved into the building in 2005 but, according to reports in The Scotsman newspaper today, has never occupied the entire 48,000 square-foot property.
The paper also noted that S&N will sublet several floors to oil and gas company BowLeven. The spokesperson confirmed this to just-drinks, but would not be drawn on whether other tenants would be required to fill the building.
In February, S&N said it was looking to extract GBP50m in cost savings from its business over the next three years. The savings will be equally split between the brewer's UK and Western European operations. John Dunsmore, then S&N UK's managing director, said the company would look to "operational best practice and support function rationalisation" for the savings.
Rising raw material costs have been a feature of numerous companies' results over the past few months. As Jessica Harvey writes, some companies have been able to bolster themselves against this trend ...
Danish reports yesterday (6 December) have suggested that the head of the UK's largest trade union for brewery workers has sided with Carlsberg and Heineken in their attempts to acquire Scottish & New...
The sale of Evans & Tate is finally expected to close next week, local reports have claimed....
Fomento Economico Mexicano (FEMSA) has announced the placement of two tranches of Mexican Peso-denominated bonds in the Mexican capital markets....
The head of Scottish & Newcastle has been quoted this week as saying he has a "bone to pick" with its joint venture partner, Carlsberg....
Scottish & Newcastle has said it expects an arbitration ruling on its disagreement with Carlsberg over their joint venture to be made in June....
Scottish & Newcastle is set to sell production, marketing and sales rights for its LCL Pils beer brand to Daniel Thwaites Brewery in the UK....
Carlsberg has confirmed that it and Heineken have held meetings recently with shareholders in Scottish & Newcastle, with a view to resolving their takeover deadlock....
- How to turn a domestic spirit into a global brand
- Mahou San Miguel - just the Facts
- Whatever happened to binge Britain? - comment
- A game of two halves for Remy Cointreau - Analysis
- Britvic's FY Performance by Region - Focus
- Beam Suntory to sell brandy & sherry to Emperador
- Former Diageo exec joins William Grant in LatAm
- Captain Morgan distillation trial queried by USVI
- This week in spirits & wine
- Sazerac sues Brown-Forman over Tennessee Fire
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research
- Future growth opportunities for global spirits
- Global Beer Market 2015-2019
- Global Wine Market to 2019 - Market Size, Development, and Forecasts