Nuveen Real Estate is selling a 25% stake in the £1bn St James Quarter mixed-use development in Edinburgh.
The 1.7m sq ft scheme, which completed in 2021, comprises an 850,000 sq ft retail galleria anchored by John Lewis, the New Eidyn residential development, which comprises 152 apartments, and the 174,300 sq ft W Edinburgh hotel.
Separately, Nuveen has appointed Savills and Eastdil Secured to market the disposal of the freehold full-service 244-room hotel.
Steve Wicks, head of retail, Europe, at Nuveen Real Estate, said: “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.”
Mark Garmon-Jones, director, UK investment, at Savills, added: “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, said: “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.”
