Lothian Pension Fund completes acquisition of Hanover Buildings
Author: LAPF Investments | Published: March 18, 2026
The Lothian Pension Fund has completed the £23.4m acquisition of the Hanover Buildings at 66-84 Rose Street in Edinburgh.
Advised by Lismore Real Estate Advisors on the deal, the price reflects a net initial yield of 5.66%.
The buildings occupy a prominent position within Edinburgh’s New Town with the hotel-anchored mixed-use asset comprising a 145-bedroom hotel which is let to Hub by Premier Inn and five retail and leisure units. The hotel is secured on a long index-linked lease and accounts for approximately 70% of the scheme’s overall income.
Lothian Pension Fund’s portfolio manager Nicola Barrett said: “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.”
Lismore Real Estate Advisors’ director Colin Finlayson added: “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.”
