Following Dutch pension asset manager, APG agreeing a deal with TH Real Estate, to take a 75% stake in the 1.7 million sq ft Edinburgh St James retail and leisure centre will commence with immediate effect.
TH Real Estate will hold the remaining 25%, on behalf of its UK Shopping Centre Fund, and 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.
Myles White, Director of Retail, 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."
The joint venture will commit to develop Edinburgh St James, which will comprise 850,000 sq ft of retail space, anchored by John Lewis, a multi-screen cinema and a world class W Hotel comprising 214 rooms. In addition, 150 private apartments, offering breath-taking views over the City. 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.
Keith Brown, Cabinet Secretary for Economy, Jobs and Fair Work, said: "The Scottish Government warmly welcomes this major investment in Edinburgh and Scotland, which will have significant positive impact on construction activity, jobs, and the economy."
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.
