Nuveen Real Estate to sell stake in Edinburgh mixed-use project St James Quarter and W Edinburgh Hotel

By Timothy Tay

/ EdgeProp Singapore |

June 11, 2024 12:47 PM SGT

St James Quarter is a 1.7 million sq ft mixed-use project that was completed in 2021. It comprises an 850,000 sq ft retail galleria, as well as the 152-unit New Eidyn residential development.

Global real estate investment manager Nuveen Real Estate is looking for a buyer to acquire its 25% stake in St James Quarter, a mixed-use project in Edinburgh, Scotland. It has enlisted Savills as its international marketing agent.

St James Quarter is a 1.7 million sq ft mixed-use project that was completed in 2021. It comprises an 850,000 sq ft retail galleria, as well as the 152-unit New Eidyn residential development. The development also includes 1,600 off-street carpark spaces.

"This is an exceptional opportunity to acquire an interest in one of the most exciting lifestyle quarters in the UK," says Mark Garmon-Jones, director, UK Investment, Savills. He adds: "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".

The mixed-use development is currently owned by a 27:75 joint venture between the Nuveen-managed UK Shopping Centre Fund and Dutch pension investment company, APG. Thus, Nuveen is looking to divest its stake in the retail and residential element of St James Quarter.

St James Quarter also consists of the freehold full-service hotel, the W Edinburgh. The 244-room asset was opened in November 2023 under a long-term hotel management agreement with Marriott International.

The W Edinburgh spans 174,300 sq ft within a 10-storey building, with unobstructed views over Edinburgh Old Town, Calton Hill and Holyrood Park. The property is fully owned by Nuveen Real Estate, and the hotel has also been put up for sale.

"The UK continues to be a priority market for many and right now, we are seeing particularly strong interest in, and intent to deploy into, the UK hospitality sector. Edinburgh is always a top target for this strategy given its strength as both a tourist and business destination," says Emma Steele, director, Global Cross Border Investment, Savills.

She adds that Savills has received strong interest for the hotel property from Asia Pacific and Middle East-based buyers, as well as a range of private and institutional investors.

Savills has been jointly appointed with Eastdil, a real estate investment bank, to market the sale of the W Edinburgh.

“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,” says Steve Wicks, head of retail, Europe at Nuveen Real Estate.

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