Nuveen looks to sell chunk of £1bn Edinburgh St James Quarter
Nuveen Real Estate is seeking to sell a 25% slice of Edinburgh’s £1bn St James Quarter complex, as well as the freehold for the W Edinburgh hotel.
The investment manager has appointed Savills to market its 25% interest in the mixed-use scheme, which is majority owned by Dutch fund manager APG.
The 1.7m sq ft scheme includes an 850,000 sq ft retail galleria, anchored by John Lewis.
Nuveen Real Estate is seeking to sell a 25% slice of Edinburgh’s £1bn St James Quarter complex, as well as the freehold for the W Edinburgh hotel.
The investment manager has appointed Savills to market its 25% interest in the mixed-use scheme, which is majority owned by Dutch fund manager APG.
The 1.7m sq ft scheme includes an 850,000 sq ft retail galleria, anchored by John Lewis.
The complex, which completed in 2021, also includes the New Eidyn residential development. It contains 152 apartments, with 89 yet to be sold.
In addition, St James Quarter has 1,600 off-street car parking spaces, accounting for three-quarters of all off-street car parking in the city.
Savills and Eastdil Secured have separately been appointed to find buyers for the freehold of W Edinburgh, which has 244 bedrooms.
The hotel was developed and opened in November 2023 under a long-term hotel management agreement with Marriott International. It measures 174,300 sq ft across 10 storeys.
Robert Stapleton, head of hotel capital markets at Savills, said: “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 it will attract significant interest from global investors.”
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.”
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Image © Savills
