Nuveen Real Estate has appointed Savills to market a 25% interest in Edinburgh’s St James Quarter mixed-use scheme, which completed in 2021.
The asking price has not been revealed, but media reports put the value of the asset at £1 bn.
The 1.7 million ft2 complex includes an 850,000 ft2 retail galleria, which is anchored by John Lewis, and benefits from footfall of over 18 million per year. The scheme also includes the New Eidyn residential development, comprising 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 the city.
Dutch pension fund APG Asset Management is retaining its 75% holding in the asset.
Savills has been jointly appointed with Eastdil Secured separately to market the disposal of the freehold full-service 244-room W Edinburgh hotel asset. The hotel was developed and opened in November 2023 under a long-term hotel management agreement with Marriott International.
The 174,300 ft2 hotel benefits from exceptional visibility with its ten-storey building, and 360 degree rooftop which offers unobstructed views over Edinburgh old town, Calton Hill and Holyrood Park.
Mark Garmon-Jones, director, UK Investment, Savills, commented: '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, 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.'
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.'
