Nuveen Real Estate Sell Stake Edinburgh Mixed Use Project St James Quarter And W Edinburgh Hotel
Nuveen Real Estate, a global real estate investment manager, is seeking a buyer for its 25% stake in St James Quarter, a mixed-use development located in Edinburgh, Scotland. Savills has been appointed as the international marketing agent for the sale.
Completed in 2021, St James Quarter spans 1.7 million square feet and includes an 850,000 square feet retail galleria and the 152-unit New Eidyn residential development. The development also features 1,600 off-street parking spaces.
Mark Garmon-Jones, director of UK Investment at Savills, describes St James Quarter as “one of the most exciting lifestyle quarters in the UK” and expresses pleasure in working with Nuveen to find a buyer for this high-performing asset, which offers top-quality residential components and a best-in-class retail and leisure experience.
Currently, St James Quarter 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 elements of the development.
In addition to the retail and residential components, St James Quarter includes the full-service hotel, W Edinburgh, which opened in November 2023 and is operated under a long-term management agreement with Marriott International. The 244-room hotel occupies 174,300 square feet within a 10-storey building and offers unobstructed views of Edinburgh’s Old Town, Calton Hill, and Holyrood Park. The property is fully owned by Nuveen Real Estate and is also included in the sale.
According to Emma Steele, director of Global Cross Border Investment at Savills, the UK remains a priority market for many investors, particularly in the hospitality sector. She notes that Edinburgh is a sought-after destination for investment due to its popularity as both a tourist and business destination. Savills has received strong interest in the hotel property from buyers in Asia Pacific and the Middle East, as well as from 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.
Steve Wicks, head of retail, Europe at Nuveen Real Estate, explains that the decision to sell their stake in St James Quarter aligns with their overall business plan for the development. Nuveen has invested in developing the iconic quarter in Edinburgh over the past eight years, and now, it is time for them to divest their interest.
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