Nuveen Real Estate Sell Stake Edinburgh Mixed Use Project St James Quarter And W Edinburgh Hotel
Global real estate investment manager Nuveen Real Estate is seeking a buyer for its 25% stake in the St James Quarter, a mixed-use development in Edinburgh, Scotland. The company has enlisted Savills as its international marketing agent for the sale.
St James Quarter, which was completed in 2021, covers 1.7 million square feet and includes an 850,000 square foot retail galleria and the 152-unit New Eidyn residential development. The project also features 1,600 off-street parking spaces.
According to Mark Garmon-Jones, director of UK Investment at Savills, this is a rare opportunity to acquire a stake in one of the most exciting lifestyle destinations in the UK. He adds that Savills is delighted to be working with Nuveen to find an investor interested in owning a stake in this highly successful asset, which offers premium residential elements and a state-of-the-art retail and leisure experience.
St James Quarter is currently owned by a joint venture between UK Shopping Centre Fund, managed by Nuveen, and Dutch pension investment company APG, with a 27% and 75% ownership respectively. Nuveen is looking to sell its stake in the retail and residential components of the development.
The project also includes the W Edinburgh, a full-service hotel with 244 rooms. The hotel, which opened in November 2023, is housed in a 10-storey building with unobstructed views of Edinburgh Old Town, Calton Hill, and Holyrood Park. The property is fully owned by Nuveen and has also been put up for sale.
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According to Emma Steele, director of Global Cross Border Investment at Savills, the UK remains a key market for many investors, with strong interest and intent to invest in the country’s hospitality sector. She notes that Edinburgh is particularly attractive due to its popularity as a tourist and business destination. Savills has received strong interest for the W Edinburgh from buyers in the Asia Pacific and Middle East regions, as well as private and institutional investors. The sale of the hotel is being marketed jointly by Savills and Eastdil, a real estate investment bank.
Steve Wicks, head of retail, Europe at Nuveen Real Estate, explains that the company has spent the past eight years investing in the development of this iconic quarter in the heart of Edinburgh. He adds that it is now time for them to sell their stake in line with their broader business plan for the project.