Nuveen Real Estate Sell Stake Edinburgh Mixed Use Project St James Quarter And W Edinburgh Hotel
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Nuveen Real Estate, a global real estate investment manager, is seeking a buyer for its 25% stake in St James Quarter, a mixed-use project located in Edinburgh, Scotland. Savills has been appointed as the international marketing agent for the sale.
Completed in 2021, St James Quarter occupies 1.7 million square feet and includes an 850,000 square foot retail galleria, a 152-unit residential development called New Eidyn, and 1,600 off-street carpark spaces. Mark Garmon-Jones, director of UK Investment at Savills, describes the opportunity as “exceptional” and highlights the project’s high performance, top-quality residential aspects, and best-in-class retail and leisure experience.
Currently, the development is owned by a 27:75 joint venture between the Nuveen-managed UK Shopping Centre Fund and Dutch pension investment company APG. Nuveen is looking to divest its stake in the retail and residential element of St James Quarter.
The project also includes a full-service hotel, the W Edinburgh, which is fully owned by Nuveen and was opened in November 2023. The 244-room hotel, located in a 10-storey building with stunning views, is operated under a long-term agreement with Marriott International. The hotel has also been put up for sale.
Emma Steele, director of Global Cross Border Investment at Savills, notes that the UK hospitality sector remains a priority market for many investors, and Edinburgh is particularly attractive as both a tourist and business destination. She adds that Savills has received strong interest for the hotel property from buyers in Asia Pacific and the Middle East, as well as private and institutional investors. Savills, along with Eastdil, a real estate investment bank, has been jointly appointed to market the sale of the W Edinburgh.
According to Steve Wicks, head of retail, Europe at Nuveen Real Estate, the decision to sell the company’s interest in the St James Quarter is in line with its wider business plan for the development. After investing in developing the iconic quarter for eight years, Nuveen is ready to divest its stake.