Nuveen puts 25% interest in Edinburgh’s St James Quarter on the market
Nuveen Real Estate has appointed Savills to market a 25% interest in Edinburgh’s St James Quarter.
The 1.7 million sq ft mixed-use scheme includes an 850,000 sq ft retail galleria anchored by John Lewis and benefitting from an annual footfall of over 18 million people per year.
The scheme also includes the New Eidyn residential development, which comprises 152 apartments.
In addition, St James Quarter offers 1,600 off-street car parking spaces, accounting for 75% of all off-street car parking in Edinburgh.
At the heart of the scheme is the W Edinburgh hotel. Savills has been appointed alongside Eastdil Secured to market the disposal of the freehold 244-room hotel asset. The hotel was developed and opened in November 2023 under a long-term hotel management agreement with Marriott International.
Mark Garmon-Jones, director of UK Investment at Savills, said: “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 at 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. Edinburgh is one of Europe’s standout hotel markets, and benefits from both high barriers to entry and an enviable mix of both corporate and leisure demand drivers which have driven Edinburgh’s exceptional hotel performance over the past five years. The hotel is best-in-class in Edinburgh and requires no additional capital expenditure. We’re confident that the hotel will attract significant interest from global investors.”
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. Providing best in class amenities to the people of Edinburgh and all those who visit, while also creating thousands of jobs in the process, we have no doubt that the quarter will continue to flourish and benefit the local community. 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.”