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.