Lighthouse Studios rents space in a historic lighthouse building owned by Waterfront Edinburgh, a development company jointly owned by the city and Scottish Enterprise.
Studio managers say they did not realize what was going on at the Nightshade club nights -- and when they found out they stopped allowing the sex club to use their space, The Scotsman reported. The club reportedly caters to people who enjoy bondage and other sadomasochistic activities.
"The emphasis is on equipment rather than dancing," Nightshade promises on its Web site.
The club holds monthly member-only events around Edinburgh. Cell phones and cameras are banned.