The landmark redevelopment of the Edinburgh St James centre will commence with immediate effect, now that Dutch pension asset manager, APG has agreed a deal with TH Real Estate, to take a 75 per cent stake in the 1.580.000m² retail and leisure centre. TH Real Estate will hold the remaining 25 per cent stake, on behalf of its UK Shopping Centre Fund. TH Real Estate will continue its role as development and asset manager of the project, for which construction will now commence. It will be one of the UK’s largest private sector regeneration projects.
The joint venture will commit to develop Edinburgh St James, which is anticipated to create an investment valued in excess €1.12bn (£1bn). It represents one of the largest inward investments for Scotland this year.
A world-class example of city-enhancing place making, Edinburgh St James will comprise 78967.58m² of retail space, anchored by John Lewis, a multi-screen cinema and a world class W Hotel, which represents their debut in Scotland, comprising 214 rooms. In addition, 150 private apartments, offering breath-taking views over the City, set a gold standard for prime residential accommodation. Designed by Allan Murray Architects, the development will help move Edinburgh further up the UK retail rankings, from 13th to 8th and will support the city’s tourist industry which contributes an estimated €290.67m (£260m) to Edinburgh’s economy each year. Edinburgh St James will also create up to 3,000 permanent jobs.
Laing O’Rourke, which had been appointed on a consultancy basis to advise on pre-construction works over the last year, has now been appointed as the main contractor for the project, for which the retail and leisure element is anticipated to complete in 2020, followed by full scheme completion in 2021. Confirmation of the joint investment partnership has paved the way for the commencement of the construction phase, which will begin with the demolition of the existing St James Shopping centre. The mall, which was constructed in the 1960s, has now closed its doors for the final time after over 40 years of trading, although John Lewis, which will anchor the Edinburgh St James scheme, will continue to trade throughout the construction process. Work will begin onsite on Monday 17 October, with demolition anticipated to take around 18 months to complete.
Robert-Jan Foortse, Head of European Property Investments at APG , said: “The Edinburgh St James project is one the UK’s largest and most significant regeneration projects. We are excited to become part of this scheme that will transform and reinforce the heart of Edinburgh city centre with the creation of a new shopping destination. Furthermore we believe that the addition of the W hotel will help attract even more tourists to this Unesco World Heritage city."
Savills acted on behalf of APG. Cushman Wakefield acted on behalf of TH Real Estate.
