Global real estate investment firm Nuveen Real Estate is seeking a buyer for its 25% stake in St James Quarter, a mixed-use development located in Edinburgh, Scotland. The company has appointed Savills as its international marketing agent to facilitate the sale.
Steve Wicks, Head of Retail, Europe at Nuveen Real Estate, stated, “After eight years of investment and development to bring the now-iconic St James Quarter to life in the heart of Edinburgh, it is time to align with our broader business strategy and divest our interest in the project.”
Completed in 2021, St James Quarter is a 1.7 million sq ft mixed-use development, featuring an 850,000 sq ft retail galleria, the 152-unit New Eidyn residential complex, and 1,600 off-street parking spaces.
The W Edinburgh, a prominent feature of the development, spans 174,300 sq ft within a 10-story building and offers uninterrupted views of Edinburgh’s Old Town, Calton Hill, and Holyrood Park. Fully owned by Nuveen Real Estate, the hotel has also been put on the market.
“This is a rare opportunity to acquire a stake in one of the UK’s most dynamic lifestyle destinations,” said Mark Garmon-Jones, Director of UK Investment at Savills. He added, “We are excited to work with Nuveen to find an investor interested in this high-performing asset, which combines premium residential offerings with a top-tier retail and leisure experience.”
The W Edinburgh hotel, a 244-room property, opened in November 2023 under a long-term hotel management agreement with Marriott International. It is part of the St James Quarter, which is currently owned by a joint venture between the Nuveen-managed UK Shopping Centre Fund and Dutch pension fund manager APG, with a 27:75 ownership split. Nuveen is now looking to sell its stake in both the retail and residential components of the project.
Emma Steele, Director of Global Cross Border Investment at Savills, commented, “The UK remains a key market for many investors, and we are witnessing strong interest in expanding into the UK’s hospitality sector. Edinburgh, with its stable appeal as both a tourist and business hub, is a prime target for this investment strategy.”
Savills, in collaboration with real estate investment bank Eastdil, has been tasked with marketing the sale of the W Edinburgh hotel. The property has already attracted significant interest from buyers in the Asia Pacific and Middle East regions, as well as from private and institutional investors.