APG buys into Edinburgh St James
Published: 18 October, 2016
Dutch pension fund to finance £1bn Edinburgh city centre scheme
TH Real Estate has secured the development partner it was seeking before starting work on site on its landmark redevelopment of the Edinburgh St James centre. Work will begin immediately now that Dutch pension asset manager, APG, has agreed a deal with TH Real Estate to take a 75 per cent stake in the 1.7m-sq ft retail and leisure centre. TH Real Estate will hold the remaining 25 per cent stake, on behalf of its UK Shopping Centre Fund and will continue its role as development and asset manager of the project.
Edinburgh St James will comprise 850,000 sq ft of retail space, anchored by John Lewis, a multi-screen cinema and the first W Hotel in Scotland with 214 rooms. In addition there will be 150 private apartments
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 £260m to Edinburgh’s economy each year. Edinburgh St James will also create up to 3,000 permanent jobs.
The construction phase 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.
Myles White, director of retail at TH Real Estate, said: “We are delighted to be strengthening our existing relationship with APG, with whom we have built up a strong and successful relationship over the past eight years, to partner on this exceptional development. Both APG, and ourselves, on behalf of our UK Shopping Centre Fund investors, look forward to a long term partnership on this investment which we believe will set a new benchmark for the future of retail and leisure schemes, both in the UK, and beyond.”
Savills acted on behalf of APG. Cushman & Wakefield acted on behalf of TH Real Estate.