Edinburgh's St James' Quarter: W Hotel and quarter share of shopping centre up for sale

x

One of the investors behind Edinburgh’s St James Quarter is to sell off the W Hotel at the heart of the development and their 25 per cent stake in the shopping centre.

Nuveen Real Estate said both the centre an the hotel were “a resounding success story” and both would continue to operate as normal, “with no impact to those working in, living in or visiting the space.”

The W Hotel, which opened in November 2023, is to be sold just seven months after it opened. The W Hotel, which opened in November 2023, is to be sold just seven months after it opened.
The W Hotel, which opened in November 2023, is to be sold just seven months after it opened. | x

Hide Ad
Hide Ad

It is understood Nuveen is gradually withdrawing from all its property investments. But the W Hotel is operated by hotel group Marriott International under a long-term management agreement.

The St James Quarter, which opened in 2021, has an estimated value of £1 billion. Nuveen has appointed property agents Savills to market their 25 per cent stake in the St James Quarter. The other 75 per cent is owned by Dutch pension fund APG.

The 1.7 million sq ft development includes 850,000 sq ft retail space, which is anchored by John Lewis and has footfall of over 18 million per year, as well as the New Eidyn residential development, comprising 152 apartments, and 1,600 off-street car parking spaces.

Separately, Savills has also been appointed, jointly with Eastdil Secured, to market the disposal of the 244-room W Hotel, which opened in November 2023.

Hide Ad
Hide Ad

Steve Wicks, Nuveen’s head of retail in Europe, said: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.

“Providing best in class amenities to the people of Edinburgh and all those who visit, while also creating thousands of jobs in the process, we have no doubt that the quarter will continue to flourish and benefit the local community.

“ Both the hotel and shops will continue to operate as normal as we go through this process, with no impact to those working in, living in or visiting the space.”

Hide Ad
Hide Ad

Mark Garmon-Jones, director of UK Investment at Savills said: “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.”

And Savills’ head of hotel capital markets Robert Stapleton said: “The hotel is best-in-class in Edinburgh and requires no additional capital expenditure. We’re confident that the hotel will attract significant interest from global investors.”

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.