Funding fuels ex-naval site transformation into whisky base

A former naval site near Edinburgh is being redeveloped into a significant whisky maturation hub with the backing of new funding.

OakNorth has provided a £7.5 million loan to support the next phase of growth at Royal Elizabeth Yard in South Queensferry. 

Bosses say the funding will refinance existing debt and support the conversion of several sheds into bonded warehouses, alongside future development. 

Alan Wright, head of operations at Royal Elizabeth Yard, said: “This funding from OakNorth is a significant milestone for Royal Elizabeth Yard as we continue to develop the site into a world-class bonded whisky maturation facility. 

“Demand for independent storage capacity remains strong, and this facility gives us the flexibility to invest in the infrastructure required to support distillers and cask owners over the long term. 

“Fraser and the team at OakNorth took the time to understand both the asset and the operational model, and we’re pleased to be partnering with them as we progress the next stage of the site’s evolution.”

Fraser McPhail, senior director of debt finance at OakNorth, added: “Royal Elizabeth Yard is a unique asset with a compelling long-term strategy, underpinned by strong fundamentals in the Scotch whisky sector. 

“The site’s scale, location and extensive planning consents position it well to address the structural shortage of independent bonded warehousing capacity in Scotland. 

“In addition to supporting the refurbishment of existing buildings, we have a strong appetite to support the consented new-build development over time, enabling Royal Elizabeth Yard to continue expanding its storage capacity. 

“This provides distillers and whisky investors with the flexibility to grow inventory without the need to deploy significant capital into developing their own storage infrastructure.”

The 50-acre site, once a World War II naval storage depot, is being transformed into what is planned to be Scotland’s largest independent bonded whisky warehousing facility.

With planning consent for up to 830,000sq ft of bonded space, the development has capacity to mature more than 1.1 million casks once complete. 

Located less than seven miles from Edinburgh city centre, the site offers distillers and investors a centrally positioned storage and compliance solution.

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