Edinburgh St James Underway

APG & TH Real Estate to transform Edinburgh city centre
Partnership will deliver £1bn Edinburgh St James development

• APG becomes co-investment partner, creating joint venture with TH Real Estate
• APG takes 75% stake; TH Real Estate's UK Shopping Centre Fund retains 25% holding
• Laing O'Rourke now appointed:  Construction to begin immediately

17 October, 2016 – 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 1.7 million 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. 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 of £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 850,000 sq ft 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 £260m to Edinburgh’s economy each year. Edinburgh St James will also create up to 3,000 permanent jobs.
 
Laing O’Rourke 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.
 
Culverwell were responsible for the private treaty negotiations with the existing tenants, long leaseholders and feuholders over a ten year period prior to the CPO being enacted. We are also proud to confirm our appointment as the leasing consultants for both the retail and leisure elements of the new shopping centre.