House Of Fraser plc said it has sold Jenners' Princes Street, Edinburgh, property for Â£32m, which it will rent back from the new landlord.
House of Fraser said it has agreed a 35-year lease, enabling the group to continue trading from the store.
Following the sale of the property, House of Fraser said it paid Â£14.1m for Jenners and the acquisition is now completed. In March it announced the acquisition of the retail business and related assets of Jenners for Â£46.1m.
"The acquisition strengthens House of Fraser's position as the UK's leading retailer of designer brands and complements our existing Scottish stores in Edinburgh and Glasgow," said John Coleman, chief executive in a statement.
"I am also pleased to announce the Princes Street property transaction which significantly reduces the cost of the acquisition and the payback period on the investment."