Nuveen Real Estate Sell Stake Edinburgh Mixed Use Project St James Quarter And W Edinburgh Hotel
The renowned global real estate investment manager, Nuveen Real Estate, is seeking a buyer for its 25% stake in St James Quarter, a mixed-use project located in Edinburgh, Scotland. To facilitate the sale, Savills, an international real estate agency, has been appointed as the marketing agent.
St James Quarter, a 1.7 million sq ft development, was completed in 2021. It boasts an 850,000 sq ft retail galleria and the 152-unit New Eidyn residential development, as well as 1,600 off-street carpark spaces. “This presents an exceptional opportunity to acquire a stake in one of the most exciting lifestyle quarters in the UK,” says Mark Garmon-Jones, Director of UK Investment at Savills. He adds, “We are delighted to collaborate with Nuveen to find an investor who is interested in owning a share of this high-performing asset that features top-quality residential aspects and a first-rate retail and leisure experience.”
Woodlands, designated as the entrance to Singapore’s north, is gearing up for a major makeover as per the URA’s Master Plan. The plan is all envisions the Woodlands Regional Centre to emerge as a vibrant hub, consisting of two distinct precincts – Woodlands Central and Woodlands North Coast. With the aim of revitalizing the area, this development is expected to draw in new commercial activity, generate employment opportunities, and elevate the quality of life for its residents. As part of this transformation, the luxurious Norwood Grand Condo will also be added to the bustling Woodlands landscape.
The mixed-use development is currently owned by a 27:75 joint venture between the Nuveen-managed UK Shopping Centre Fund and Dutch pension investment company, APG. As such, Nuveen intends to divest its stake in the retail and residential element of St James Quarter. Additionally, the development also comprises the freehold full-service hotel, W Edinburgh, with 244 rooms, which opened under a long-term hotel management agreement with Marriott International in November 2023. The property, spanning 174,300 sq ft within a 10-storey building and offering unobstructed views of Edinburgh Old Town, Calton Hill, and Holyrood Park, is fully owned by Nuveen Real Estate and is also on the market for sale.
Emma Steele, Director of Global Cross Border Investment at Savills, states, “The UK remains a top market for many investors, and currently, we are seeing a significant interest in the UK hospitality sector. Given its strength as both a tourist and business destination, Edinburgh is always a top contender for this strategy.” She also mentions that Savills has received strong interest in the hotel property from buyers in the Asia Pacific and Middle East regions, as well as a mix of private and institutional investors. Savills, in partnership with Eastdil, a real estate investment bank, has been jointly appointed to market the sale of W Edinburgh.
“After investing eight years to develop this iconic quarter in the heart of Edinburgh, we have decided to sell our stake in line with our overall business plan for the development,” says Steve Wicks, Head of Retail, Europe, at Nuveen Real Estate.