The goal of the present study is to perform a large eddy simulation of vertical turbulent annular pipe flow under conditions in which fluid properties vary significantly, and to investigate the effects of buoyancy on the turbulent structures and transport. Isoflux wall boundary conditions with low and high heating are imposed. The compressible filtered Navier-Stokes equations are solved using a second order accurate finite volume method. Low Mach number preconditioning is used to enable the compressible code to work efficiently at low Mach numbers. A dynamic subgrid-scale stress model accounts for the subgrid-scale turbulence. Comparisons were made with available experimental data. The results showed that the strong heating and buoyant force caused distortions of the flow structure resulting in reduction of turbulent intensities, shear stress, and turbulent heat flux, particularly near the wall.