Nuveen Real Estate is bringing to market a 25% interest in Edinburgh’s St James Quarter, the £1 billion retail and leisure complex completed in 2021, as well as a 100% interest in the W Edinburgh hotel at the scheme.
Savills is sole agent for the 25% interest, but has been jointly appointed with Eastdil Secured to sell the hotel. Dutch asset manager APG, which manages the Netherlands' civil service and education pension fund ABP, owns the remaining 75% of the mixed-use development.
The 1.7 million-square-foot mixed-use scheme includes an 850,000-square-foot retail "galleria", which is anchored by John Lewis, and has footfall of over 18 million per year. The scheme also includes the New Eidyn residential development, comprising 152 apartments.
It is the only major city centre retail and leisure complex to have been developed in recent years, driven by the underlying strength of Edinburgh as a destination for tourists and and its wide catchment area. It will be another major test of sovereign wealth demand for a sizeable city centre development following British Land's recent sale of its 50% stake in the Meadowhall shopping centre in Sheffield to Norges.
In addition, St James Quarter offers 1,600 off-street car parking spaces, accounting for 75% of all off-street car parking in the city.
Nuveen is also selling the freehold full-service 244-room W Edinburgh hotel asset. The hotel was developed and opened in November 2023 under a long-term hotel management agreement with Marriott International.
The 174,300-square-foot hotel is a 10-storey building, and has 360 degree rooftop terrace which offers unobstructed views over Edinburgh old town, Calton Hill and Holyrood Park.
Steve Wicks, head of retail, Europe at Nuveen Real Estate, added: “Having spent the last eight years investing to develop the now iconic quarter in the heart of Edinburgh, the time has come for us to sell our interest in line with our wider business plan for the development. The site and hotel are a resounding success story, both in terms of trading and the impact they have had on the city more generally, and we are immensely proud of the quarter we have created." He added: "Both the hotel and shops will continue to operate as normal as we go through this process, with no impact to those working in, living in or visiting the space.”
Mark Garmon-Jones, director, UK investment, Savills, said in a statement: “This is an exceptional opportunity to acquire an interest in one of the most exciting lifestyle quarters in the UK. We’re pleased to be working with Nuveen to find an investor looking to own a stake in this high-performing asset with top end quality residential aspects and a best-in-class retail and leisure experience.”
Robert Stapleton, head of hotel capital markets, Savills, added: “We’re pleased to be appointed on the sale of the W Edinburgh. The quality of the development is absolutely outstanding and, being positioned in the centre of St James Quarter, Edinburgh’s busiest and best retail district, the hotel benefits from both an exceptional location, but also phenomenal footfall which delivers strong demand for both the food & beverage and bedroom offerings at the W Edinburgh."